Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 9: 20 - Problems (page 211)

Consider Figure 9-8. According to rule of 70, about how many years would have been required for US per capita real GDP to double if it had remained at the average level observed between 1961 and 1980 ? Between 2001 and 2017 .?

Short Answer

Expert verified

Doubling time as per 1961-80growth rate = 26.9years

Doubling time as per 1981-2000growth rate =30.43years

Step by step solution

01

Rule of 70 basic 

The rule of 70 states that, time taken for an economy to double its GDP =

70/GDPgrowthrate

02

Numeric Solution 

Growth rate between 1961to1980=2.6%

Growth rate between 1981to2000=2.3%

GDP doubling time as per 1961to1980growthrate=70/2.6=26.9years

GDP doubling time as per1981to2000growthrate=70/2.3=30.43years

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Explain why productivity growth, saving, and new technologies are crucial for maintaining economic growth

Describe how immigration and property rights influence economic growth

Brazil has a population of about 210million, with about 150million over the age of 15. Of these, an estimated 25percent, or37.5million people, are functionally illiterate. The typical literate individual reads only about two nonacademic books per year, which is less than half the number read by the typical literate U.S. or European resident. Answer the following questions solely from the perspective of new growth theory:

a. Discuss the implications of Brazil's literacy and reading rates for its growth prospects in light of the key tenets of new growth theory.

b. What types of policies might Brazil implement to improve its growth prospects? Explain.

In 2018, a nation's population was 10million, its real GDP was role="math" localid="1651518280695" \(1.21billion, and its GDP deflator had a value of 121. By 2019, its population had increased torole="math" localid="1651518397677" 12million, its real GDP had risen to \)1.5billion, and its GDP deflator had a value ofrole="math" localid="1651518422407" 125 . What was the percentage change in per capita real GDP between2018 and 2019 ?

Consider Figure 9-7, and suppose that we round the rate of growth of per capita real GDP experienced in the European Union between 1981 and 1990 to the nearest full percentage point. Based on the information in Table 9-3, by what percentage would per capita real GDP has increased between 1990 and 2020 if the economic growth rate will have remained at this rounded level?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free