2.
The accompanying table shows the average annual growth rate in real GDP per capita for
Argentina, Ghana, and South Korea using data from the Penn World Table, Version 6.1, for
the past few decades.
a.
For each decade and for each country, use the Rule of 70 to calculate how long it would
take for that country’s real GDP per capita to double.
b.
Suppose that the average annual growth rate that each country achieved over the period
1990–2000 continues indefinitely into the future. Starting from 2000, use the Rule of
70 to calculate, where possible, the year in which a country will have doubled its real
GDP per capita.
Average annual growth rate of
real GDP per capita
Years
Argentina
Ghana
South Korea
1960–1970
2.24%
4.36%
5.86%
1970–1980
1.35
−
0.57
5.69
1980–1990
−
3.70
−
0.18
7.51
1990–2000
4.27
1.33
4.78
2
CHAPTER 8
PROBLEMS
1960
real GDP
per capita
2000
real GDP
per capita
Real GDP
per capita
(1996
dollars)
1960
$7,395
$832
$1,571
$12,414
1970
9,227
1,275
2,777
16,488
1980
10,556
1,204
4,830
21,337
1990
7,237
1,183
9,959
26,470
2000
10,995
1,349
15,881
33,308
Year
Percentage of
1960
real GDP