Chapter 15, Problem 2P

To determine

To determine: How long it would take for the given countries’ real GDP per capita to double.

Concept Introduction:

Gross Domestic Product (GDP): It refers to the gross money value or the gross market value of all finished goods and services produced by resident and non-resident people of a country that is within the borders of that particular country in an accounting year.

Rule of 70: It is the formula to estimate that how long a variable will take to get doubled.

Formula to calculate number of years to double a variable:

Here:

• R is current constant growth rate.
• N is number of year it will take to be double.