Real gdp per person in the united states was $9,864 in 1950. over the next 48 years, it grew at a compound annual rate of 2.0%. if, instead, real gdp per person had grown at an average compound annual rate 2.5%, then real gdp per capita in the united states in 1998 would have been approximately larger.

real GDP per capita in the United States in 1998 is large by $6751

Explanation:

given data

Real GDP per person = $9,864

compound annual rate = 2.0%

average compound annual rate =  2.5%

time = 48 year

solution

real GDP per capita with rate 2% is

real GDP per capita = 9864 ×   ...............1

and

real GDP per capita  when rate = 2.5%

real GDP per capita = 9864 ×   ...................2

so

Difference between these two equation will be

Difference of real GDP per capita = 9864 × - 9864 ×  

Difference of real GDP per capita =  $6751