Use the following information in the table and calculate the GDP per capita for country X for the last 5 years. Comment if the country X had achieved Economic growth by calculating the GDP per capita.

Here are the calculations for Question 1 and the explanation for Question 2. Question 1: Step 1: Calculate GDP per Capita for each year using the formula GDP per Capita = GDP in Million KinaPopulation in Million. 2006: GDP per Capita = 100 Million Kina6.5 Million ≈ 15.38 Kina 2007: GDP per Capita = 200 Million Kina7.5 Million ≈ 26.67 Kina 2008: GDP per Capita = 200 Million Kina7.5 Million ≈ 26.67 Kina 2009: GDP per Capita = 200 Million Kina8 Million = 25.00 Kina 2010: GDP per Capita = 300 Million Kina10 Million = 30.00 Kina Step 2: Determine the increase/decrease in economic growth by comparing the GDP per capita of the current year with the previous year. | Year | GDP in Million Kina | Population in Million | GDP per Capita (Kina) | Increase/decrease in the economic growth | | :--- | :------------------ | :-------------------- | :---------------------- | :-------------------------------------- | | 2006 | 100 | 6.5 | 15.38 | - | | 2007 | 200 | 7.5 | 26.67 | Increase | | 2008 | 200 | 7.5 | 26.67 | No change | | 2009 | 200 | 8 | 25.00 | Decrease | | 2010 | 300 | 10 | 30.00 | Increase | Step 3: Comment on whether Country X achieved economic growth. Country X experienced fluctuating economic growth over the 5 years. It showed significant growth from 2006 to 2007 and again from 2009 to 2010. However, there was no change in 2008 and a decrease in 2009, indicating inconsistent economic growth based on GDP per capita. Question 2: Investing in a large-scale project like PNG-LNG significantly impacts the Papua New Guinea economy. During the construction phase, the project acts as a major injection into the economy, boosting aggregate demand for goods and services. This leads to substantial employment creation, both directly in the project and indirectly in supporting industries, thereby reducing unemployment. The increased economic activity and wages contribute to a rise in national income. However, this phase often requires significant imports of specialized machinery and expertise, which can initially strain the balance of payments and potentially lead to inflation due to increased demand for local resources and labor. Once operational, the PNG-LNG project becomes a major source of exports, significantly improving the country's balance of payments and generating substantial foreign exchange. The government benefits from increased taxation revenue from the project's profits and related economic activities, which can be reinvested into public services or infrastructure. This long-term revenue stream supports sustained economic growth and further increases in national income. The project can also attract further foreign direct investment and encourage domestic savings as incomes rise, contributing to overall economic development and stability. What's next? Send 'em 📸