The annual rate of growth of real GDP in a developing nation is 0.3 percent. Initially, the country's population was stable from year to year.

 The annual rate of growth of real GDP in a developing

nation is 0.3 percent. Initially, the country’s 

 population was stable from year to year. Recently,

however, a significant increase in the nation’s

birthrate has raised the annual rate of population

growth to 0.5 percent. (See page 397.)

a.  What was the rate of growth of per capita real

GDP before the increase in population growth?

b.  If the rate of growth of real GDP remains

unchanged, what is the new rate of growth of

per capita real GDP following the increase in

the birthrate?