Country A’s real GDP per capita is $4,000 today, but it is constantly growing at 5% per year. Country B’s current real GDP per capita is $16,000, but it is constantly growing at 2% per year. Will the standard-of-living in Country A ever catch-up with or overtake Country B? If so, when would it happen? Provide your analysis

Country A’s real GDP per capita is $4,000 today, but it is constantly growing at 5% per year. Country B’s current real GDP per capita is $16,000, but it is constantly growing at 2% per year. Will the standard-of-living in Country A ever catch-up with or overtake Country B? If so, when would it happen? Provide your analysis

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter20: Growth And Less Developed Countries

Section: Chapter Questions

Problem 3SQP

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