In the second half of the twentieth century, Japan experienced exceptional growth. According to World Bank data, in 1985, Japan’s GDP was $3.67 trillion, and its annual growth rate was 6.33 percent. The GDP in this problem is in constant 2010 dollars. Assuming an exponential annual growth rate of 6.33 percent, calculate Japan’s projected GDP in 2010. In fact, Japan’s 2010 GDP was $5.7 trillion. What could explain any discrepancy between this number and your answer to part (a)?

In the second half of the twentieth century, Japan experienced exceptional growth. According to World Bank data, in 1985, Japan’s GDP was $3.67 trillion, and its annual growth rate was 6.33 percent. The GDP in this problem is in constant 2010 dollars. Assuming an exponential annual growth rate of 6.33 percent, calculate Japan’s projected GDP in 2010. In fact, Japan’s 2010 GDP was $5.7 trillion. What could explain any discrepancy between this number and your answer to part (a)?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 3P

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