In 2018, the country of Questville had a GDP of $39000.00 and the country of Mistania had a GDP of $19500.00, which is half, or 50% of Questville's GDP. If Questville grows at the slow rate of 1% for 5 years while Mistania grows at the fast rate of 6% for 5 years, what will Mistania's GDP be as a percentage of Questville's GDP in from now? 5 years Include the % sign in your answer. Does this example illustrate the concept of convergence? OYes ONo

In 2018, the country of Questville had a GDP of $39000.00 and the country of Mistania had a GDP of $19500.00, which is half, or 50% of Questville's GDP. If Questville grows at the slow rate of 1% for 5 years while Mistania grows at the fast rate of 6% for 5 years, what will Mistania's GDP be as a percentage of Questville's GDP in from now? 5 years Include the % sign in your answer. Does this example illustrate the concept of convergence? OYes ONo

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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Suppose that U.S. real GDP per capita is $50,000 and grows on average at 3% per year. How long will it take for U.S. real GDP per capita to double at this growth rate? If this growth rate continues, what will U.S. real GDP r capita be in 70 years? S Suppose that U.S. real GDP per capita is $50,000 and grows on average at 5% per year (rather than 3% a year) How long will it take for U.S. real GDP per capita to double at this growth rate? years (round to nearest year) If this growth rate continues, what will U.S. real GDP per capita be in 70 years? S years (round to nearest year)
The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. During 1960-2010, which countries were able to reduce the gap betweentheir GDP per capita and the U.S. GDP per capita?
The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. Why have some countries reduced the gap between their incomes andthat of the United States and other countries failed to do so?
The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. During 1960-2010, which countries failed to reduce the gap betweentheir GDP per capita and the U.S. GDP per capita?
120 100F NOR ARE SGP CHE HKG SWE TWN Na. A VEN 40 60 80 100 120 Relatiwe GDP per enpita to the US lewel - 1970 In the figure above, GDP per capita relative to the US level for a large group of countries is plotted for years 1970 (in the horizontal axis) and 2000 (in the vertical axis). Which one of the following statements is correct? O Income per capita of countries on the 45 degree line has grown at a similar rate than income per capita of the US in each year. O Income per capita of each country is plotted according to how strongly it correlates to the income per capita of the US in each year. O The income per capita of those countries below the 45 degree line has grown the fastest in between years 1970 and 20 O The income per capita of those countries on the 45 degree line has not grown in between years 1970 and 2000.
An economy starts off with a GDP per capita of 5,000. How large will the GDP per capita be if it grows at an annual rate of 2 for 20 years? 2 for 40 years? 4 for 40 years? 6 for 40 years?
15. Suppese that in 1960 Japan had an initial per capita GDP of $12.000 per year and China had a per capita GOP of 55.000. But China is grewing at 5 percent per year and iapan is growing at 3 percent per year. ia richer in 2010 with a per capita GDP of eporoni mately a lapan $5.000 a. China: $73,500 a. lapen: $31,500 . Not enough information is given. e China $5,000
Country A is $25,000 and County B is $4,000 per capita GDP in 2010. the rate of economic in county A is 3% and counrty B is 2% 1. uppose the growth rate of A country is constant. How fast does the income gap level($21,000 difference) at this point need to grow to become that income gap level in 2030? 2. Suppose the growth rate of country B is 6%, how many years does it take to bridge the income gap?
estion 30 A country with neither population growth nor technological progress is nitaly in the golden-rule steady state. Carefuly ilustrate this situation using a graph with output per worker, investment per worker, and depreciation per worker on the vertical axis and capital per worker on the horizontal axis. Now suppose climate change increases the depreciation rate. If the country adjusts its saving rate to reach the new golden- rule steady state, is it possible to determine how output per worker and consumption per worker in the new steady state compare to their levels in the initial steady state? Explain.
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Saved The accompanying table shows real GDP from 2010 to 2015 for China, measured in billions of 2009 dollars: Bil1ions of 2009 Year Dollars Growth Rate 2010 5,609 2011 6,140 2012 6,613 2013 7,122 2014 7, 642 2015 8, 169 J Instructions: Enter your response rounded to one decimal place. a) Complete the growth rate column above. % b) By what percentage did the Chinese economy grow between 2010 and 2015? c) Chinese economic growth was the highest in (Click to select)
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