Assume that in Mexico the average annual per capita GDP growth rate is 3 percent per year, while in Argentina it is 2.5 percent. Next, assume that both countries began with an initial per capita GDP of $1,000 in 1965. By 2015, per capita GDP would have been ________ in Mexico and ________ in Argentina. A.$228; $291 B.$3,437; $4,384 C.$4,515; $3,523 D.$4,384; $3,437 E.Not enough information is given.

To find the future value of any growing entity with a constant rate we use compounding formula -…

GDP of $1,000 in 1965. By 2015, per capita GDP would have been ________ in Mexico and ________ in Argentina. A. $228; $291 B. $3,437; $4,384 C. $4,515; $3,523 D. $4,384; $3,437 E. Not enough information is given.

GDP of $1,000 in 1965. By 2015, per capita GDP would have been in Mexico and in Argentina. A. $228; $291 B. $3,437; $4,384 C. $4,515; $3,523 D. $4,384; $3,437 E. Not enough information is given.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 5P

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Question

Assume that in Mexico the average annual per capita GDP growth rate is 3 percent per year, while in Argentina it is 2.5 percent. Next, assume that both countries began with an initial per capita GDP of $1,000 in 1965. By 2015, per capita GDP would have been ________ in Mexico and ________ in Argentina.

A.

$228; $291

B.

$3,437; $4,384

C.

$4,515; $3,523

D.

$4,384; $3,437

E.

Not enough information is given.

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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