Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 12, Problem 4P
To determine
(a)
To compute:
The required time period would it take for two countries to be at the same level of real GDP per capita.
To determine
(b)
To explain:
The way real per capita GDP can be compared for two countries if they had the same initial level of real GDP per capita.
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Homework 5.6
While both India and China have grown tremendously over the last few decades, China appears to have clearly grown more impressively. See the GDP of the two countries in 1990 India GDP of $326 billion, China GDP of $358 billion By 2015, China’s GDP grew to $10.8 trillion India’s GDP grew to $2.07 trillion2 China’s growth > 33%,
whereas India’s is > 6% The World Bank suggests that 800 million people have also moved out of poverty in China. The poverty rate fell from 88% of the population in 1981 to just above 4% of the population in 2014. India, cut its poverty level from 60% to 30% of its population between 1981 and 2012. However, the population also increased, so the overall decline in poverty was from 429 million to 400 million.. The growth of China and its effects on its population is visible. The rise of a middle class has turned China into a marketer's dream as a huge 'market' for all products such as automobiles.
Question: What reasons can be you attribute for…
According to Figure 15.4, by what percentage did GDP per capita increase between 1820 and 1995 in
North America?
Latin America?
Africa?
2. You are a manager at a large shampoo company and on the search for future
markets. You identified two low income countries that look very dynamic:
Country A has a GDP/capita growth rate of -1% and population growth
rate of 9%. Country B has a GDP/capita growth rate of 7% and constant
population.
(a) Discuss which country you should focus on for your expansion.
(b) Discuss if your answer would change if the products you are trying to
sell are cars.
Chapter 12 Solutions
Exploring Macroeconomics
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