Let’s figure out how long it will take for the average Indian in India to be as wealthy as the average Western European is today. Note that all numbers are adjusted for inflation, so the numbers are comparable. India’s current GDP per capita is $3,000, let’s say that real output per person there grows at 5% per year. Using the rule of 70, how many years will it take for India to reach Italy’s current level of GDP per capita, about $24,000 per year?

Let’s figure out how long it will take for the average Indian in India to be as wealthy as the average Western European is today. Note that all numbers are adjusted for inflation, so the numbers are comparable. India’s current GDP per capita is $3,000, let’s say that real output per person there grows at 5% per year. Using the rule of 70, how many years will it take for India to reach Italy’s current level of GDP per capita, about $24,000 per year?

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 4P

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