Spain's current real GDP (YO) is €326 billion, and grows at a constant rate of 1.1%. Portugal's current real GDP is smaller (€55 billion), but they are experiencing a constant 4.8% growth rate. Part a) Calculate the real GDP for both countries 30 years, 50 years and 70 years from now. Allow the calculator to carry decimals in your intermediate calculations, but round GDP to the nearest billion Euro. Use these rounded values throughout the rest of the problem. Part b) Calculate the percentage difference in real GDP between the two countries for each 20-year interval. Report your answer in percentage form, rounded to the nearest integer. Part c) Suppose Portugal's goal is to catch up to Spain's GDP in 25 years. What growth rate must they sustain each year if they are to accomplish their goal? Express your answer as a percentage, rounded to one decimal place.

Spain's current real GDP (YO) is €326 billion, and grows at a constant rate of 1.1%. Portugal's current real GDP is smaller (€55 billion), but they are experiencing a constant 4.8% growth rate. Part a) Calculate the real GDP for both countries 30 years, 50 years and 70 years from now. Allow the calculator to carry decimals in your intermediate calculations, but round GDP to the nearest billion Euro. Use these rounded values throughout the rest of the problem. Part b) Calculate the percentage difference in real GDP between the two countries for each 20-year interval. Report your answer in percentage form, rounded to the nearest integer. Part c) Suppose Portugal's goal is to catch up to Spain's GDP in 25 years. What growth rate must they sustain each year if they are to accomplish their goal? Express your answer as a percentage, rounded to one decimal place.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter32: Macroeconomic Policy Around The World

Section: Chapter Questions

Problem 30P: Retrieve the following data from The World Bank database (http //databank.worldbank. org/data/...

See similar textbooks

Similar questions

Cross country comparisons of GDP per capita typically use purchasing power parity equivalent exchange rates, which are a measure of the long run equilibrium value of an exchange rate. In fact, we used PPP equivalent exchange rates in this module. Why could using market exchange rates, which sometimes change dramatically in a short period of time, be misleading?
Retrieve the following data from The World Bank database (http //databank.worldbank. org/data/ home.aspx) for India, Spain, and South Africa for the most recent year available: â€¢ GDP in constant international dollars or PPP â€¢ Population â€¢ GOP per person in constant international dollars â€¢ Mortality rate, infant (per 1,000 live births) â€¢ Health expenditure per capita (current U.S. dollars) â€¢ Life expectancy at birth, total (years)
An economy starts off with a GDP per capital of 12,000 euros. How large will the GDP per capita be if it grows at an annual rate of 3 for 10 years? 3 for 30 years? 6 for 30 years?
Need help ASAP. 1. Assume that "A" represents your father's birth year. (Note: “A” is used only to individualize the question for each student). Calculate the average annual growth rate of GDP per capita in Turkey as a percentage between A and 2020, clearly showing the source from which you obtained the GDP figures(my father birth year is 1961)
Suppose a country has a real GDP per capita of $69,000 and grows at a constant rate for the next 49 years. How much larger (in percentage terms) is this country if its growth rate is 4.13% instead of 3.05% after 49 years of growth? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
Year Real GDP Nominal GDP 2019 $15,292.67 $17,081.38 2020 $17,822.90 $18,350.11 2021 $18,521.37 $19,397.19 Refer to the table above. What is the growth rate in real GDP from 2020 to 2021? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
Give the latest estimated values of GDP, of GDP per capita, and of GNI, in the U.S., as reported by the US Department of Commerce, in both real and nominal values. Provide the most recent estimates of the rates of growth of GDP, in both real and nominal terms.
Between the start of 2012 and the start of 2013, a country’s economic growth rate was 4 percent. Its population did not change during the year, nor did its price level. What was the rate of increase of the country’s nominal GDP during this one-year interval? Q
Economic growth around the world The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it was the poorest economy in the table in the year 2010. The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies. Economy Real Income per Person in 1960 Real Income per Person in 2010 Annual Growth Rate (Dollars) (Dollars) (Percent) Canada 12,946 35,810 2.06 United Kingdom 11,884 32,034 2.00 Korea 1,610 28,702 5.93 Hong Kong 4,518 44,070 4.66 Guatemala 1,985 3,859 1.34 Niger 945 570 -1.01 Indicate which economy…
Malaysia’s GDP to grow 6.3% to 7.5% next year, KUALA LUMPUR (July 7): International agencies have forecast that Malaysia's gross domestic product (GDP) growth in 2021 will be in the range of 6.3% to 7.5%, according to Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.The finance minister said the projections are subject to Malaysia’s continued success in managing Covid-19, as well as in steering and nurturing the economy towards recovery and growth. "As Malaysia is an open economy, whether our growth will be a U-shaped or V-shaped recovery will also depend on external factors, such as the recovery of our major trading partners as well as the restoration of global supply chains," he said in his welcoming address at Invest Malaysia 2020 today. Malaysia recorded only five new Covid-19 cases yesterday, with only 198 active cases and an approximately 98% recovery rate to date. "The rate of infections may have been low in our country, but the public have been constantly reminded…
Singapore's real GDP was 412 billion dollars in 2016 and 429 billion dollars in 2017. The population was 5.6 million in 2016 and 5.6 million in 2017. Calculate Singapore's economic growth rate in 2017, the growth rate of real GDP per person in 2017, and the approximate number of years it will take for real GDP per person in Singapore to double if the 2017 economic growth and population growth rates are maintained. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
What information will you need to compute for the following: Growth rate of investment Growth rate of exports Growth rate of OFW deployment