MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Question
Chapter 8, Problem 3P
To determine
The required number of years to equate the GDP per capita.
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Students have asked these similar questions
Assume that a leader country has real GDP per capita of $80,000, whereas a follower country has real GDP per capita of $40,000.
Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 5 percent in the follower
country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living
standard of the leader country?
Instructions: Enter your answer as a whole number.
years
Assume that a leader country has real GDP per capita of $40,000, whereas a follower country has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 2 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?
Which of the following two countries A and B
ceteris paribus do you expect to have the
higher steady-state level of GDP per capita?
Moreover, which country do you expect to
grow faster? For this, you may assume that
both countries will initially start their growth
paths below their corresponding steady
states.
a) The two countries have initially the same
levels of GDP per capita but country A has a
higher savings rate
. b) The two countries have initially the same
levels of GDP per capita but population in
country A grows at a rate of 10% while in
country B population grows at a rate of 8%.
c) The two countries have initially the same
levels of GDP per capita but the average
educational attainment of workers in country
A is about 1.2 times higher than in country B.
Chapter 8 Solutions
MACROECONOMICS W/CONNECT
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- Fill in the third blank. Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000. How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP? India's per-capita GDP must double __________ times. Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate. Doubling time: ______________________ years How many years will it take for India to reach Italy’s current level of GDP per capita? It will take ________________ years for India to reach Italy's current level of GDP per capita.arrow_forwardFill in the second blank. Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India’s per capita GDP to equal Italy’s current per-capita GDP of $28,000. How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP? India's per-capita GDP must double __________ times. Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate. Doubling time: ______________________ yearsarrow_forwardWhat are the current growth rates, population size and patterns of the United States, China, and Brazil. What are the discussions on events or policies that may have affected that countries population size/growth rate. Be sure to include reputable sources, such as the United Nations or your selected country's government websites. government's response to population changes (laws, policies, social changes, etc.) Give the current population size of the world and the current projection of the population size as the 21st century progressed.arrow_forward
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