The annual rate of growth of real GDP in a developing nation is 0.3 percent. Initially, country's population was stable from year to year. Recently, however, an important increase in nation's birthrate has raised annual rate of population growth to 0.5 percent.
1. Determine the rate of growth of per capita real GDP before the increase in population growth?
2. If the rate of growth of real GDP remains unchanged, determine the new rate of growth of per capita real GDP following the increase in the birthrate?