Question

Sizing Up the Economy Using GDP – End of Chapter Problem In 2018, India was the world's seventh largest economy, with a $2.69 trillion GDP (as measured in U.S. dollars). India was also one of the world's fastest-growing economies, with an annual growth rate of real GDP of 7.3%. a. If the country maintains the same growth rate, how many years will it take for India's GDP to double? Round your answer to two decimal places. India's GDP will double in 958.90 years. b. Bangladesh's GDP was $286.27 billion, but its growth rate was equal to India's. How many years will it take for Bangladesh's economy to double? Round your answer to two decimal places. Bangladesh's GDP will double in years. years. Although Bangladesh and India have the same annual growth rate, their economies are much different in size. One way to explain the size difference to someone who is unfamiliar with scaling large numbers is to visualize it. o India's GDP is a whereas Bangladesh's GDP is a d. Which strategy for scaling big numbers would work best to compare India's and Bangladesh's GDP? The best strategy is to

Answer 1

A)The rate of growth=7.3

So any variable( GDP) will double in,

1.073^n=2

1.073^9.9=2.008~2

It will almost take India 10 years to double its GDP at annual growth rate of 7.3%

B) As growth rate is same so the time Bangladesh GDP will take to gets will be same and Equal 10 years.

286*1.073^n=286*2

1.073^n=2

1.073^10~2

C) India gdp is a developing whereas Bangladesh GDP is a underdeveloped or least develop.

D)The best strategy is growth of per capita GDP.