Ch15Answers

Ch15Answers - CHAPTER 15 ECONOMIC GROWTH PROBLEMS 1....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECONOMIC GROWTH PROBLEMS 1. China’s output grew at an amazing rate of 10 percent per year in the 1990s. At that rate how long will it take for China's GDP to double? (see Table 15.1). With its population increasing at 0.6 percent per year, how long will it take for per capita GDP to double? At 10 percent a year, China’s GDP would double in 7.2 years (72/10). With population growing at 0.6 percent a year, the growth rate per capita is the growth rate of GDP subtracted by the growth rate of the population, in this case 10 - .06 = 9.4 percent. Using the Rule of 72 (72/9.4), it would take 7.7 years for China’s GDP per capita to double. 2. If real GDP is growing at 3 percent a year, how long will it take for: a. Real GDP to double? b. Real GDP per capita to double if the population is increasing each year by i. 0 percent? ii. 1 percent? iii. 2 percent? With real GDP growing at 3 percent a year: (a) Real GDP will double in 24 years (check Table 15.1 on page 341 or use "rule of 72" so that 72/3 = 24)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/18/2008 for the course ECON 201 taught by Professor Bertaux during the Spring '08 term at Xavier.

Page1 / 2

Ch15Answers - CHAPTER 15 ECONOMIC GROWTH PROBLEMS 1....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online