Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Chapter 3, Problem 12E
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In 1960 GDP per capita in the Republic of Korea (constant 2015 US$) was $1027. In 2021 it was $32731. Calculate the growth rate of real GDP per capita in the Republic of Korea over this period. Now suppose that the Republic of Korea grows at the same rate for the 70 years following 2021. What will the Republic of Korea real GDP per capitae in the year 2091?
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In this section we looked at the growth rate formula for measuring the average annual growth rate of a
variable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may be
years apart. For example, in the worksheet you computed the average annual rate of inflation from
1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the same
value as you do with the percentage change formula?
Hint: Say that real GDP grew from $20.0 trillion one year to $20.4 trillion the next year. Do both the
percentage change and the growth rate formulas give you the same answer?
yes
no
Suppose a country has a real GDP per capita of $69,000 and grows at a constant rate for the next 49 years. How much larger (in percentage terms) is this country if its growth rate is 4.13% instead of 3.05% after 49 years of growth? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
Chapter 3 Solutions
Macroeconomics (Fourth Edition)
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