(a)
Estimate the value of the growth rate of real
(a)
Explanation of Solution
The growth rate of real GDP:
The growth rate of real GDP can be calculated using the following formula:
The growth rate of real GDP:
If the 2016 real GDP is 14,461 billion and 2017 real GDP is 14,702 billion, then the value of the growth rate of real GDP can be calculated using the following formula:
Thus, the value of the growth rate of real GDP is 1.7%.
(b)
Estimate the value of the growth rate of real GDP per person.
(b)
Explanation of Solution
Country M’s population growth:
If country M’s population in 2016 is 121 million and 122 million in 2017, then the population growth rate can be calculated using Equation (1) as follows:
Thus, the value of Country M’s population growth rate is 0.8%
Growth rate of real GDP per person:
The growth rate of real GDP per person can be calculated as follows:
Thus, the value of the growth rate of real GDP per person is 0.9%.
(c)
Estimate the approximate number of years to double the real GDP.
(c)
Explanation of Solution
The approximate number of years to double the real GDP can be calculated as follows:
Thus, the approximate number of years to double the real GDP per person is 77.8 years.
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Chapter 6 Solutions
Macroeconomics
- Australia's real GDP was $A1,730 in 2017 and $A1,782 in 2018. Australia's population was 24.6 million in 2017 and 25.0 million in 2018. Calculate a. The growth rate of real GDP. b. The growth rate of real GDP per person. c. The approximate number of years it will take for real GDP per person in Australia to double if the current real GDP growth rate and population growth rate are maintained.arrow_forwardBrazil’s real GDP was 1,520 trillion reais in 2011 and 1,585 trillion reais in 2012. Brazil’s population was 195 million in 2011 and 196.5 million in 2012. Calculate a. The growth rate of real GDP b. The growth rate of real GDP per person c. The approximate number of years it takes for real GDP per person to double when the real GDP growth rate and the population growth rate are maintained.arrow_forwardMalaysia’s real GDP was $560 billion in 2010 and $570 billion in 2011. Malaysia’s population was 130.7 million in 2010 and 130.8 million in 2011. i. Calculate economic growth rate of Malaysia. ii. Calculate growth rate of real GDP per person of Malaysia. iii. How many years it takes for real GDP per person in Malaysia to double if the 2010 economic growth rate and population growth rate are maintained.arrow_forward
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- Hypothetical data is given for the following countries. Calculate real growth per capita in the following countries: Instructions: Enter your responses rounded to one decimal place. If you are entering a negative number, be sure to include a negative sign (-) in front of the number. a. Democratic Republic of Congo: population growth = 2.8 percent; real output growth=-1.6 percent. Real growth per capita: % b. Estonia: population growth-(0.6) percent; real output growth-4.5 percent. Real growth per capita:[ % c. India: population growth=1.7 percent; real output growth = 5.9 percent. Real growth per capita: [ % d. United States: population growth 0.7 percent; real output growth = 2.8 percent. Real growth per capita: [arrow_forwardThe table provides some data on real GDP and the population of Iberia in 2019 and 2020 If the growth rates of 2020 are maintained in future years, when will real GDP per person in Iberia double? If the growth rates of 2020 are maintained in future years, real GDP per person in t Iberia will A. double by 2055 B. double after 70 years C. double by 2090 D. never double unless the population stops growing Year 2019 2020 Real GDP (billions of pesos) 180,000 185,436 Population (billions) 300 303arrow_forwardSouth Africa's real GDP was 3,023 billion rand in 2014 and 3,063 billion rand in 2015. South Africa's population growth rate in 2015 was 1.6 percent Calculate a. The growth rate of real GDP b. The growth rate of real GDP per person c. The approximate number of years it takes for real GDP per person in South Africa to double if the 2015 growth rate of real GDP and the population growth rate are maintained. COOK The growth rate of real GDP in South Africa in 2015 was >>> Answer to 1 decimal place. percentarrow_forward