A lower income economy starts off with a per capita GDP of $5,000. How large will the per capita GDP be if it grows at an annual rate of 2% for 10 years? 2% for 30 years? 4% for 10 years? 4% for 30 years? Explain why the difference between 2% and 4% growth matters?
A lower income economy starts off with a per capita GDP of $5,000. How large will the per capita GDP be if it grows at an annual rate of 2% for 10 years? 2% for 30 years? 4% for 10 years? 4% for 30 years? Explain why the difference between 2% and 4% growth matters?
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 3P
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A lower income economy starts off with a per capita
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Step 1
Given data:
per capita GDP of $5,000
Annual growth rates are:
2% for 10 years
2% for 30 years
4% for 10 years
4% for 30 years
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