The expected years that the per capita income of the Democratic Republic of Congo will take to surpass the per capita income of the United States of America.
Concept Introduction:
The per capita income index is an indicator of how much an individual earns in comparison to his peers in an economy during a specific period of time. This indicator helps to understand the standard of living of individuals in different countries by comparing their average per capita income with one another.
Explanation of Solution
Where,
g = growth rate
t =number of years required
n = per capita income
Hence, in 171.70 years, the Democratic Republic of Congo’s per capita income will surpass the per capita income of the United States of America, if both the countries continue to grow at the current growth rate annually.
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Chapter 21 Solutions
ECON MICRO
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- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax