India’s GDP per capita increased from $310 in 1991 to $1,489 in 2012. (i) Calculate the average annual rate of growth of the Indian economy during this period using the arithmetic average. (ii) Calculate the geometric average annual growth rate of India during this period. Explain why the number you find in (ii) differs from the result obtained in (i).

India’s GDP per capita increased from $310 in 1991 to $1,489 in 2012. (i) Calculate the average annual rate of growth of the Indian economy during this period using the arithmetic average. (ii) Calculate the geometric average annual growth rate of India during this period. Explain why the number you find in (ii) differs from the result obtained in (i).

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 8SQP

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