ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
The following table shows the GDP per capita since 1820 in selected
countries (in PPP-adjusted 2005 dollars).
1. Identify the countries that experienced sustained growth from 1920 to
2010.
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- Calculate approximately how many years it will take per capita GDP in the United States, Mexico, China, Rwanda, and Haiti to double, assuming that each country continues to grow at the same average rate as between 1960 an 2010. (Hint: Use the Rule of 70.) (Round your responses to one decimal place. Enter "−1" if a country will never double its GDP.) Implied (Average) Annual Growth (%) Years to Double United States 2.00 ? Mexico 1.79 ? China 4.72 ? Rwanda 0.60 ? Haiti −0.14 ? If the United States, Mexico, China, Rwanda, and Haiti continue to grow at the rates given in the exhibit, how many years (starting from 2010)would it take each to catch up to the United States in terms of per capita GDP? (Hint: If a country's GDP per capita is growing at a constant rate, g, then the natural log of GDP per capita t years into the future is: ln y(t) = ln y(0) + gt, where y(0) is GDP per…arrow_forward4arrow_forwardReal GDP per capita in the country of Arcadia grew from about $4,703 in 1900 to about $42,731 in 2008, which represents an annual growth rate of 2.06 percent . if the arcadia continues to grow at this rate, calculate the number of years when its real GDP per capita will double_____ years . ( enter your response as an integers)arrow_forward
- Suppose China’s GDP is growing by 7% a year and its population grows by 1% a year. Also suppose that US GDP grows by 3% a year and its population grows by 1% a year, and that in 2019 US GDP is 1.5 times China’s while US population is one quarter of China’s. If these growth rates continue By what year will China’s GDP double? Its population? Its per capita GDP?In what year will China’s GDP equal US GDP?In what year will China’s GDP per capita equal US GDP per capita?arrow_forwardUse the table to answer the questions. Define productivity as GDP per worker, and please enter all answers as numerical values rounded to 3 decimal places, and not as percentages (e.g., 0.1030.103 instead of 10.3%10.3%). GDP Population Workers Year 1 10931093 167167 113113 Year 2 11511151 283283 253253 What is the GDP growth rate? What is GDP per capita growth rate? What is the productivity growth rate?arrow_forwardGDP per capita is one way to measure an economy's growth. China and India began to progress when they allowed private ownership, around ____. Since then, there has been steady, strong growth in these economies. Group of answer choices 2000 1970 1980 1990 1960arrow_forward
- in a given year, suppose the real GDP per capita growth rate is 3.8 percent, the inflation rate is 2 percent, and the population growth rate is 12 percent. What is the nominal GDP growth rate? Multiple Choice 50 percent 38 percent 70 percent 5.8 percentarrow_forwardSuppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year and that real GDP per capita of China is $4,000, and its annual growth rate is 7%. How long will it take real GDP per capita of the United States to double?arrow_forwardAssume GDP per capita in constant dollars was $30,250 for 2003 and $40,000 for 2004. In this case, the economy's growth rate would be ___%arrow_forward
- Real GDP per capita in the country of Arcadia grew from about $4,666 in 1900 to about $42,069 in 2008, which represents an annual growth rate of 2.06 percent. If Arcadia continues to grow at this rate, calculate the number of years when its real GDP per capita will double. years. (Enter your response as an integer.)arrow_forwardIn 1980, Denmark had a GDP of $90 billion (measured in US dollars) and a population of 6.1 million. In 2000, Denmark had a GDP of $150 billion (measured in US dollars) and a population of 6.2 million. By what percentage did Denmark's GDP per capita rise between 1980 and 2000? Question 23 options: 205% 144% 64% 120%arrow_forwardThe table below shows the level of real GDP and real GDP per capita growth rates for a select set of countries for the year 2016. Determine the number of years it will take for the standard of living to double in each country. Instructions: Round your answers to one decimal place. Growth Rates and the Rule of 72 Country Real GDP (millions) Growth Rate of Real GDP per Capita (percent) Number of Years for Standard of Living to Double Canada $1,445,260 0.8% Madagascar 37,297 1.8 Philippines 843,692 5.1 Sweden 488,759 2.8 United States 12,341,233 0.2arrow_forward
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