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2. Here, again, are the GDP per capita numbers for a number of countries shown in class. But rather than focus on welfare now, let us consider the effects of differences in growth rates on how the GDP ranking between countries evolves over time. GDP and Welfare across Countries, 2007 Per capita GDP 100.0 Country United States France United Kingdom Germany Italy Japan Hong Kong Singapore South Korea Mexico Russia Brazil China Indonesia India Botswana South Africa Malawi 74.2 81.7 78.0 69.8 75.2 84.0 112.6 57.0 28.4 33.1 17.8 12.6 7.8 6.8 23.4 17.0 1.2 Welfare Life expectancy 100.0 110.5 104.6 98.3 92.9 86.3 63.9 52.4 41.0 17.7 16.8 12.0 5.0 4.5 3.2 2.4 2.4 0.3 1.000 77.8 1.187 80.8 1.098 2 79.4 1.103 79.5 1.213 81.3 1.291 82.5 1.272 82.4 1.148 80.4 1.082 0.913 76.0 0.561 67.5 0.753 72.1 0.797 72.6 0.624 67.7 0.520 64.1 0.215 52.1 0.194 51.0 0.295 50.9 Decomposition CIY Leisure Inequality 1.000 1.000 1.000 0.814 0.801 0.651 0.953 1.175 1.121 0.859 1.067 0.832 0.822 0.870 1.168 0.708 0.857 0.892 1.143 0.848 0.776 1.022 0.726 0.854 1.041 0.695 0.814 0.721 0.830 0.587 0.751 0.503 0.806 0.409 0.744 0.740 0.846 0,603 0.755 0.979 0.923 0.797 0.778 0.915 1.024 0.745 0.809 0.933 0.963 0.784 0.781 0.654 0.891 0.532 0.769 0.935 0.761 0.871 1.053 0.709 0.818 0.546 0.878 0.444 0.765 0.971 1.100 0.790 0.833 1.177 0.803 0.958 0.743 0.974 0.793 0.442 1.070 0.538 1.126 0.431 1.077 0.525 1.000 0.651 1.000 0.651 1.000 0.651 1.061 0.552 0.756 0.992 0.967 0.701 1.000 0.651 0.851 0.863 1.010 0.636 0.988 0.669 1.000 0.651 0.672 1.104 0.878 0.827 (a) Suppose that the U.S. growth rate of real GDP/capita will equal what it has been over the past 100 or so years: about 2% per year. How long will it take U.S. GDP/capita to double? (b) Suppose that China will grow at the rate 6% per year over the foreseeable future (a rate that is lower than in its recent times). How long will it take China to double its GDP/capita? (c) Given the growth-rate projections above and the information in the table, can you figure out how long it will take China to surpass the U.S. in the international GDP/capita ranking?

2. Here, again, are the GDP per capita numbers for a number of countries shown in class. But rather than focus on welfare now, let us consider the effects of differences in growth rates on how the GDP ranking between countries evolves over time. GDP and Welfare across Countries, 2007 Per capita GDP 100.0 Country United States France United Kingdom Germany Italy Japan Hong Kong Singapore South Korea Mexico Russia Brazil China Indonesia India Botswana South Africa Malawi 74.2 81.7 78.0 69.8 75.2 84.0 112.6 57.0 28.4 33.1 17.8 12.6 7.8 6.8 23.4 17.0 1.2 Welfare Life expectancy 100.0 110.5 104.6 98.3 92.9 86.3 63.9 52.4 41.0 17.7 16.8 12.0 5.0 4.5 3.2 2.4 2.4 0.3 1.000 77.8 1.187 80.8 1.098 2 79.4 1.103 79.5 1.213 81.3 1.291 82.5 1.272 82.4 1.148 80.4 1.082 0.913 76.0 0.561 67.5 0.753 72.1 0.797 72.6 0.624 67.7 0.520 64.1 0.215 52.1 0.194 51.0 0.295 50.9 Decomposition CIY Leisure Inequality 1.000 1.000 1.000 0.814 0.801 0.651 0.953 1.175 1.121 0.859 1.067 0.832 0.822 0.870 1.168 0.708 0.857 0.892 1.143 0.848 0.776 1.022 0.726 0.854 1.041 0.695 0.814 0.721 0.830 0.587 0.751 0.503 0.806 0.409 0.744 0.740 0.846 0,603 0.755 0.979 0.923 0.797 0.778 0.915 1.024 0.745 0.809 0.933 0.963 0.784 0.781 0.654 0.891 0.532 0.769 0.935 0.761 0.871 1.053 0.709 0.818 0.546 0.878 0.444 0.765 0.971 1.100 0.790 0.833 1.177 0.803 0.958 0.743 0.974 0.793 0.442 1.070 0.538 1.126 0.431 1.077 0.525 1.000 0.651 1.000 0.651 1.000 0.651 1.061 0.552 0.756 0.992 0.967 0.701 1.000 0.651 0.851 0.863 1.010 0.636 0.988 0.669 1.000 0.651 0.672 1.104 0.878 0.827 (a) Suppose that the U.S. growth rate of real GDP/capita will equal what it has been over the past 100 or so years: about 2% per year. How long will it take U.S. GDP/capita to double? (b) Suppose that China will grow at the rate 6% per year over the foreseeable future (a rate that is lower than in its recent times). How long will it take China to double its GDP/capita? (c) Given the growth-rate projections above and the information in the table, can you figure out how long it will take China to surpass the U.S. in the international GDP/capita ranking?

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
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2. Here, again, are the GDP per capita numbers for a number of countries shown in class. But rather than focus on welfare now, let us consider the effects of differences in growth rates on how the GDP ranking between countries evolves over time. GDP and Welfare across Countries, 2007 Per capita GDP 100.0 Country United States France United Kingdom Germany Italy Japan Hong Kong Singapore. South Korea Mexico Russia Brazil Chinal Indonesia. India Botswana South Africa Malawi 74.2 81.7 78.0 69.8 75.2 84.0 112.6 57.0 28.4 33.1 17.8 12.6 7.8 6.8 23.4 17.0 1.2 Welfare Life expectancy 100.0 110.5 104.6 98.3 92.9 86.3 63.9 524 41.0 17.7 16.8 12.0 5.0 4.5 3.2 2.4 2.4 0.3 1.000 77.8 1.187 80.8 1.098 2 79.4 1.103 79.5 1.213 81.3 1.291 82.5 1.272 82.4 1.148 80.4 1.082 79.3 0.913 76.0 0.561 67.5 0.753 72.1 0.797 72.6 0.624 67.7 0.520 64.1 0.215 52.1 0.194 51.0 0.295 50.9 Decomposition C/Y Leisure Inequality 1.000 1.000 1.000 0.814 0.801 0.651 0.953 1.175 1.121 0.776 0.859 1.022 1.067 0.832 0.822 0.870 1.168 0.708 0.857 0.892 1.143 0.848 0.726 0.854 1.041 0,695 0.814 0.721 0.830 0.587 0.751 0.503 0.806 0.409 0.740 0,603 0.755 0.979 0.923 0.744 0.846 0.797 0.915 0.778 1.024 0.745 0.809 0.963 0.933 0.784 0.781 0.654 0.891 0.532 0.769 0.935 0.974 0.761 0.793 0.871 1.053 0.709 0.818 0.546 0.878 0.444 0.765 0.971 1.100 0,790 0.833 1.177 0.803 0.958 0.743 0.442 1.070 0.538 1.126 0.431 1.077 0.325 1.000 0.651 1.000 0.651 1.000 0.651 1.061 0.532 0.756 0.992 0.967 0.701 1.000 0.651 0.851 0.863 1.010 0.636 0.988 0.669 1.000 0.651 0.672 1.104 0.878 0.827 (a) Suppose that the U.S. growth rate of real GDP/capita will equal what it has been over the past 100 or so years: about 2% per year. How long will it take U.S. GDP/capita to double? (b) Suppose that China will grow at the rate 6% per year over the foreseeable future (a rate that is lower than in its recent times). How long will it take China to double its GDP/capita? (c) Given the growth-rate projections above and the information in the table, can you figure out how long it will take China to surpass the U.S. in the international GDP/capita ranking?
Transcribed Image Text:2. Here, again, are the GDP per capita numbers for a number of countries shown in class. But rather than focus on welfare now, let us consider the effects of differences in growth rates on how the GDP ranking between countries evolves over time. GDP and Welfare across Countries, 2007 Per capita GDP 100.0 Country United States France United Kingdom Germany Italy Japan Hong Kong Singapore. South Korea Mexico Russia Brazil Chinal Indonesia. India Botswana South Africa Malawi 74.2 81.7 78.0 69.8 75.2 84.0 112.6 57.0 28.4 33.1 17.8 12.6 7.8 6.8 23.4 17.0 1.2 Welfare Life expectancy 100.0 110.5 104.6 98.3 92.9 86.3 63.9 524 41.0 17.7 16.8 12.0 5.0 4.5 3.2 2.4 2.4 0.3 1.000 77.8 1.187 80.8 1.098 2 79.4 1.103 79.5 1.213 81.3 1.291 82.5 1.272 82.4 1.148 80.4 1.082 79.3 0.913 76.0 0.561 67.5 0.753 72.1 0.797 72.6 0.624 67.7 0.520 64.1 0.215 52.1 0.194 51.0 0.295 50.9 Decomposition C/Y Leisure Inequality 1.000 1.000 1.000 0.814 0.801 0.651 0.953 1.175 1.121 0.776 0.859 1.022 1.067 0.832 0.822 0.870 1.168 0.708 0.857 0.892 1.143 0.848 0.726 0.854 1.041 0,695 0.814 0.721 0.830 0.587 0.751 0.503 0.806 0.409 0.740 0,603 0.755 0.979 0.923 0.744 0.846 0.797 0.915 0.778 1.024 0.745 0.809 0.963 0.933 0.784 0.781 0.654 0.891 0.532 0.769 0.935 0.974 0.761 0.793 0.871 1.053 0.709 0.818 0.546 0.878 0.444 0.765 0.971 1.100 0,790 0.833 1.177 0.803 0.958 0.743 0.442 1.070 0.538 1.126 0.431 1.077 0.325 1.000 0.651 1.000 0.651 1.000 0.651 1.061 0.532 0.756 0.992 0.967 0.701 1.000 0.651 0.851 0.863 1.010 0.636 0.988 0.669 1.000 0.651 0.672 1.104 0.878 0.827 (a) Suppose that the U.S. growth rate of real GDP/capita will equal what it has been over the past 100 or so years: about 2% per year. How long will it take U.S. GDP/capita to double? (b) Suppose that China will grow at the rate 6% per year over the foreseeable future (a rate that is lower than in its recent times). How long will it take China to double its GDP/capita? (c) Given the growth-rate projections above and the information in the table, can you figure out how long it will take China to surpass the U.S. in the international GDP/capita ranking?
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