EBK MACROECONOMICS
EBK MACROECONOMICS
12th Edition
ISBN: 8220100663307
Author: PARKIN
Publisher: PEARSON
Question
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Chapter 6, Problem 1SPA

(a)

To determine

Calculate the growth rate of real GDP.

(a)

Expert Solution
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Explanation of Solution

Growth rate of Real GDP can be calculated by using the following formula.

Growth rate of real GDP=(Real GDP2014Real GDP2013Real GDP2013)×100        (1)

The growth rate of Real GDP can be calculated by substituting the respective values in equation (1) as follows.

Growth rate of real GDP=(1,2021,1801,180)×100=(221,180)×100=0.0166=1.86

Thus, the growth rate of real GDP is 1.86 percent

(b)

To determine

Estimate the growth rate of real GDP per person.

(b)

Expert Solution
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Explanation of Solution

The growth rate of real GDP per person in Brazil can be calculated by using the following formula.

Population growth rate=(Population2014Population2013Population2013)×100        (2)

The growth rate of real GDP per person can be calculated by substituting the respective values in equation (2).

Population growth rate=200198198×100=1.01

Thus, the population growth rate in Brazil is 1.01 percent.

Growth rate of real GDP per person can be calculated as follows.

Growth rate of real GDP per person=Growth rate of real GDPPopulation growth rate=1.861.01=0.85

Thus, the growth rate of real GDP per person is 0.85 percent.

(c)

To determine

Estimate the approximate number of years to double the real GDP.

(c)

Expert Solution
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Explanation of Solution

Number of years to double=70Real GDP per person=700.85=82.35

Thus, Brazil will take 82.35 years to double its real GDP person.

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