An economy starts off with a GDP per capita of $ 13,500. In 10 years, GDP per capita is $19,400. Calculate the annual average growth rate of GDP per capita. Remember, GDP growth is calculated using the compound growth rate formula. Round your answer to two decimal places if necessary.

An economy starts off with a GDP per capita of $ 13,500. In 10 years, GDP per capita is $19,400. Calculate the annual average growth rate of GDP per capita. Remember, GDP growth is calculated using the compound growth rate formula. Round your answer to two decimal places if necessary.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose the GDP growth resulting from physical capital in an economy is 1%, and the growth resulting from human capital is 2%. If the annual growth rate of GDP is 5%, the growth resulting from technology equals: 1% 2% 3% 4%
In theory, a greater number of poor and developing countries such as Ghana should be catching up with the rest of the world. However there are many examples of poor countries that are not growing and seem stuck in poverty. Some factors have a positive influence on growth and some have a negative influence. In the set of answers below you can only use each answer once. What is the influence on growth of... (Select for each one from the pic attached.) Corruption: ? lack of good roads: ? international trade: ? poorly secured property rights: ? microfinance: ?
An increase in the standard of living of citizens of a country can be best measured by the growth rate of per capita nominal GDP nominal GDP real GDP per capita real GDP
Which of the following statements about economic growth is false? a) Economic growth solves the economic problem. b) Economic growth can be helped by having new technology. c) Economic growth can be helped with more education. d) Economic growth can be helped by using tidal power
How to calculate Average annual growth rate of real GDP per worker, Real GDP per person, Real GDP per hour and capital per worker.
5. The real GDP per capita in Colombia was $3,692 in 2000 and $5,889 in 2020. What is the average annual growth rate of the real GDP per capita from 2000 to 2020? Please use the log formula.
In 2018, India was the world’s seventh largest economy, with a $2.69 trillion GDP (as measured in U.S. dollars). India was also one of the world’s fastest-growing economies, with an annual growth rate of real GDP of 7.3%. a. If the country maintains the same growth rate, how many years will it take for India’s GDP to double? b. Bangladesh’s GDP was $286.27 billion, but its growth rate was equal to India’s. How many years will it take for Bangladesh’s economy to double? c. Although Bangladesh and India have the same annual growth rate, their economies are much different in size. How can you explain the size difference to someone who is unfamiliar with scaling large numbers? Which strategies would you use?
Small differences in the rate of economic growth can lead to large differences in living standards. Consider two countries: Fritolaysia and Khandibar. Currently, real GDP per person (average income) is $60,000 in Fritolaysia and $20,000 in Khandibar. Suppose you want to project what the real GDP per person will be in each country 100 years from now. The following formula shows how to compute the average income in n years, where g represents the growth rate of real GDP per person (in decimal form-that is, 1.5% is entered as 0.015): Average Income in n Years Current Average Income x (1 + g)" Use the growth formula to find the correct amounts to select to fill in the following table. Growth Rate Average Income after 100 Years (Percent) (Dollars) 1.5 1.7 4 4.2 1 1.5% 1.7% Suppose Fritolaysia is expected to grow at 1.7% for the next 100 years. Which of the following growth rates in Khandibar would cause the average income in Khandibar to exceed the average income in Fritolaysia in 100…
What are the two major determinants of the overall growth of the economy according to the view of economic growth based on labor data?
Assume GDP of a (tiny) country at time zero is equal to $105.00105.00. Calculate GDP 11 years11 years later if the annual growth rate of GDP is 6 percent6 percent. Round to two places after the decimal.
Suppose a country has a real GDP per capita of $68,000 and grows at a constant rate for the next 36 years. How much larger (in percentage terms) is this country if its growth rate is 4.33% instead of 3.13% after 36 years of growth? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
Explain how we measure the growth rate of an economy