Homework Answers
Rule of 70 :
Number of years to double = 70 / annual percentage growth rate
So if the annual percentage growth rate of GDP is as low as 3% ,
then number of years it takes real GDP to double = 70 / 3 = 23.33 = 24 years ( approximately )
So rule of 70 shows that GDP can double in 24 years in a poor country . 24 years can be a short period of time if we consider a generation . The hard work and consistency of one generation for 24 years can double the GDP per capita .
So countries with even small differences in GDP growth rates matter to its citizens .
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The Rule of 72 Small differences in annual growth rates cumulate into large differences in GDP. Shown here are the number of years it would take to double GDP at various growth rates. Doubling times can be approximated by the rule of 72. Seventy-two divided by the growth rate equals the number of years it takes to double. Growth Rate Doubling Time (percent) (years) Never 144.0 72.0 48.0 36.0 20.6 20.6 18.0 16.0 14.4 13.1 12.0 11.1 China's output grew...
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The Rule of 72 Small differences in annual growth rates cumulate into large differences in GDP. Shown here are the number of years it would take to double GDP at various growth rates. Doubling times can be approximated by the rule of 72. Seventy-two divided by the growth rate equals the number of years it takes to double. Growth Rate Doubling Time (percent) (years) Never 144.0 72.0 48.0 36.0 20.6 20.6 18.0 16.0 14.4 13.1 12.0 11.1 China's output grew...
Small differences in annual growth rates cumulate into large differences in GDP. Shown here are the number of years it would take to double GDP at various growth rates. Doubling times can be approximated by the rule of 72. Seventy-two divided by the growth rate equals the number of years it takes to double. Growth Rate Doubling Time (Percent) (Years) 0.0 Never 0.5 144.0 1.0 72.0 48.0 1.5 2.0 36.0 28.8 2.5 3.0 3.5 24.0 20.6 18.0 4.0 4.5 16.0...
9.15. Based on data in Table 9-1 and the rule of 70, if U.S. per capita real GDP continues to grow at the average rate it has experienced since 1990, about how many years will be required for it to double? TABLE 9-1 Per Capita Real GDP Growth Rates in Various Countries Average Annual Rate of Growth of Real Country GDP Per Capita, 1990-2017 (%) Japan 0.8 France 0.9 Germany 1.4 Canada 1.4 Sweden 1.5 United States Turkey Chile 3.7...
24 26) Suppose the U.S. GDP growth rate is faster relative to other countries' GDP growth rates. This A) shifts the aggregate demand curve to the right. B) shifts the aggregate demand curve to the left. C) moves the economy up along a stationary aggregate demand curve. D) moves the economy down along a stationary aggregate demand curve.
Question 21 (1 point) Recently, the Chinese government has acknowledged that its GDP growth rate for 2015 will fall to 7%, which is substantially below China's recent annual growth rates, including that for 2014 (Wall Street Journal, March 5, 2015). Over the past several decades, China has invested heavily in capital, increasing its capital stock. However, its economic system provides entrepreneurs little incentive to work to develop new technologies. What is the effect of the Chinese government doubling its spending...
Fill in the blanks in the table below. he blanks in the table below. Population growth Inflation Real GDP growth per capita Nominal GDP growth 58 28 -18 Country Svea Bonifay Chaires Drifton Estiffanulga 18 28 08 58 78 Does the rule of 70 predict greater increases in the amount of income for poorer countries when both rich and poor countries have the same growth rate? No, according to the rule of 70, if the growth rate of income is...
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: $...
Growth Rate South Korea Real GDP per capita Growth Rate Year 1970 1980 Growth Rate Canada Real GDP per capita $12,717 $16,731 Uganda Real GDP per capita $190 $1,886 $3,262 $182 $176 1990 $19,540 $23,156 $6,615 $10,80% 2000 Source: Organisation for Economic Cooperation and Development (OECD) The (decade-long) economic growth rate for Canada is shown in the second column. For example, from 1970 to 1980, Canada GDP grew from $12,717 to $16,731, an increase of Sie 512717 1711-512.717 32 Use...
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