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Chapter 9: Q. 17 (page 211)

Based on data in Table 9-1and in Table 9-3, if China's per capita real GDP continues to grow at the average rate it has experienced since 1990, will its per capita real GDP be twice as high as it is today within a decade? Explain your reasoning.

Short Answer

Expert verified

8.64 years will be required for it to double.

Step by step solution

01

Definition

The rule of 70 could be a way of estimating the time it takes to double variety supported its rate of growth. It can even be remarked as doubling time. The rule of 70 calculation uses a specified rate of return to work out what number years it'll hold an amount—or a selected investment—to double.

02

Rule 70

Rule of 70= Time taken to double = 70/growthrate

=70/8.1

=8.64

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Most popular questions from this chapter

A nation's per capita real GDP was$2,000 in 2017, and the nation's population was5 million in that year. Between 2017 and 2018, the inflation rate in this country was role="math" localid="1651519423079" 5 percent, and the nation's annual rate of economic growth was 10 percent. Its population remained unchanged. What was per capita real GDP in 2018? What was the level of real GDP in2018?

On the basis of the information in Problem 9-10and reference to Table 9-3, about how many more dollars' worth of real GDP per capita would the person in China be earning 50years from now than the individual in Mozambique?

In 2018, a nation's population was 10 million. Its nominal GDP was \(40billion, and its price index was 100. In2019, its population had increased to 12million, its nominal GDP had risen to\)57.6billion, and its price index had increased to 120. What was this nation's economic growth rate during the year?

A nation's capital goods wear out over time, so a portion of its capital goods become unusable every year. Last year, its residents decided to produce no capital goods. It has experienced no growth in its population or in the amounts of other productive resources during the past year. In addition, the nation's technology and resource productivity have remained unchanged during the past year. Will the nation's economic growth rate for the current year be negative, zero, or positive?

Suppose that during the next 10years, real GDP triples and population doubles in each of the nations in Problem 9-4.What will per capita real GDP be in each country after 10years have passed?
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