Assume that a "leader country has real GDP per capita of $40,000, whereas a "follower country"...

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Assume that a leader country has real GDP per capita of $40,000, whereas a follower country has real GDP per capita of $20

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Answer 1

Answer #1

Ans: 10 years

Explanation:

Here Rule 70 is used.

Rule of 70 is used to determine how long it would take for an amount to double given the annual growth rate.

In the question leader country's real GDP is $40,000 and growth rate is 0%, the follower country's real GDP is $20,000 and growth rate is 7%. So, $20,000 will be doubled in 10 years (i.e., 70 / 7 = 10 years).

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Answer 2

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Assume that a "leader country has real GDP per capita of $40,000, whereas a "follower country"...

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