Exploring Macroeconomics
7th Edition
ISBN: 9781285859446
Author: Sexton, Robert L.
Publisher: Cengage Learning
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Question
Chapter 12, Problem 4P
To determine
(a)
To compute:
The required time period would it take for two countries to be at the same level of real GDP per capita.
To determine
(b)
To explain:
The way real per capita GDP can be compared for two countries if they had the same initial level of real GDP per capita.
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While both India and China have grown tremendously over the last few decades, China appears to have clearly grown more impressively. See the GDP of the two countries in 1990 India GDP of $326 billion, China GDP of $358 billion By 2015, China’s GDP grew to $10.8 trillion India’s GDP grew to $2.07 trillion2 China’s growth > 33%,
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Question: What reasons can be you attribute for…
The table below shows real GDP, population, and real GDP per capita for the hypothetical economy of Highlands.
Real GDP and Population over Time
Population
(thousands of
people)
224
228
237
Year
1
2
Real GDP
(millions of
dollars)
$5,847
6,666
7,541
Instructions: Round your answers to one decimal place.
a. Using the information in the table, calculate the growth rates in real GDP, population, and the standard of living (real GDP per capita)
between year 1 and year 2.
Real GDP:
Population:
Standard of living:
b. Now, using the information in the table, calculate the growth rates in real GDP, population, and the standard of living between year 2
and year 3.
Real GDP:
%
%
Real GDP per
Capita (dollars)
$26,103
29,237
31,819
%
%
Population:
Standard of living:
c. The standard of living in the economy of Highlands between year 1 and year 2 grew (Click to select) the standard of living between
year 2 and year 3.
%
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