The GDP in Italy is \( \$ 1.94 \) trillion. The rate of inflation is \( 2.5 \% \). If the population of Italy is \( 60,673,000 \), find the per capita GDP in this country. Real GDP \( = \) GDP - (GDP . Inflation Rate) Per Capita GDP - Roplint Per Capita GDP \( =\$[?] \) Round to the nearest cent
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To find the per capita GDP in Italy, we first need to calculate the Real GDP by adjusting the nominal GDP for inflation. 1. Calculate the Real GDP: \[ \text{Real GDP} = \text{GDP} - (\text{GDP} \times \text{Inflation Rate}) \] \[ = 1.94 \text{ trillion} - (1.94 \text{ trillion} \times 0.025) \] \[ = 1.94 \text{ trillion} - 0.0485 \text{ trillion} \] \[ = 1.8915 \text{ trillion} \] 2. Now, to find the Per Capita GDP: \[ \text{Per Capita GDP} = \frac{\text{Real GDP}}{\text{Population}} \] \[ = \frac{1.8915 \text{ trillion}}{60,673,000} \] \[ \approx 31,143.45 \] So, the Per Capita GDP in Italy is approximately **\$31,143.45** when rounded to the nearest cent.