Question

There are two countries in the world: Wallyworld and Vanhausland. Both countries currently have a GDP per capita of 1. Use the information in the table about growth and productivity to answer the questions. Round all numerical answers to two decimal places. Country Wallyworld Vanhausland Growth rate of GDP per capita 0.096 0.016 What is GDP per capita in Wallyworld in 23 years ? Wallyworld's GDP: $ What is GDP per capita in Vanhausland in 23 years? Vanhausland's GDP: $ In 23 years, Wallyworld grows how many times more than Vanhausland? Wallyworld's growth: times Vanhausland's growth

Answer 1

Answer:

Given

A)

GDP of Wallyworld A=1

Growth rate G=0.096

So GDP of Wallyworld in 23 years = A*(1+G)^23=1*(1+0.096)^23=$8.2346

B)

GDP of Vanhuaseland A=1

Growth rate G=0.016

So GDP of Vanhuaseland in 23 years = A*(1+G)^23=1*(1+0.016)^23=$1.4406

C)

Wallyworld growth = GDP of Wallyworld in 23 years/GDP of Vanhuaseland in 23 years=8.2346/1.4406=5.71 times the Vanhuaseland growth.