Country alpha and beta initially have the same real GDP per capita. Country Alpha experiences 3% economic growth, while Country Beta grows at a sustained rate of 9 percent. In 14 years, Country Beta's GDP will be approximately _________ that of Country Alpha

Country alpha and beta initially have the same real GDP per capita. Country Alpha experiences 3% economic growth, while Country Beta grows at a sustained rate of 9 percent. In 14 years, Country Beta's GDP will be approximately _________ that of Country Alpha

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 20RQ: For a high-income economy like the United States, what aggregate production function elements are...

See similar textbooks

Related questions

Q: Country Able and Country Baker initially have the same real GDP per capita. Country Able experiences…

A: Here we will use the future value formula in case of compound interest rate. Which is given as…

Q: Country A and Country B happen to have the same GDP per capita. The standard of living is said to be…

A: GDP means market value of goods produced domestically in a year . It is the domestic income and per…

Q: (5) GDP grows at 4 percent per year in Afghanistan and at 2 percent per year in Iraq. In 2016, GDP…

A: We are given that, GDP growth in Country A = 4%GDP growth in Country I = 2% In 2016, the GDP for…

Q: Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with…

A: The rule of 70 is a means of estimating the number of years it takes for an investment or money to…

Q: a) the profit maximizing decisions of an individual manufacturer. b) economic growth. c) the rate…

A: Maximizing the standard of living and achieving steady economic growth are the overarching…

Q: 5) Foreign aid has proven to be ineffective in igniting economic growth mainly because: a) It does…

A: Foreign aid refers to financial assistance provided by one country to another for various purposes,…

Q: In year 0, Country A has a real GDP per capita of $1,600. If Country A grows at a constant rate of…

A: Real GDP is the measure of GDP in base year brice. Real GDP per capita is calculated as the real…

Q: In the last century, Tunisia’s Gross Domestic Product (GDP) has grown rapidly on average 5% per…

A: The Gross Domestic Product (GDP) measures the market value of all the final goods and services…

Q: xponential growth implies that ________. growth rates can only be positive growth rates will…

A: Exponential growth function is: f(x)=A(1+r)n where A is initial amountr is the growth raten is the…

Q: uppose the U.S. GDP is double China's, but the growth rate is 7.0% in China and 4.6% in the United…

A: At present, let China's GDP is X so present US GDP is 2X China's GDP growth rate is 7% US GDP…

Q: Richland’s real GDP per person is $10,000, and Poorland’s real GDP per person is $5000. However,…

A: The term "gross domestic product" (GDP) refers to the production of goods and services at a specific…

Q: a) the profit maximizing decisions of an individual manufacturer. b) economic growth. c) the rate…

A: “Since first question is incomplete and you have asked multiple questions, we will solve the second…

Q: Country A and Country B initially have the same real GDP per capita. Country A experiences no…

A: GDP refers to the value of final goods and services produced in an economy. Real GDP is the value of…

Q: If country A has currently GDP per capita of $65,000 and economic growth rate of 2%, and Country B…

Q: Real GDP per capita in the country of Arcadia grew from about $4,703 in 1900 to about $42,731 in…

A: The term gross domestic product refers to the situation under which the overall flow of products and…

Q: Chapter 11 Activity - Discussion: State GDPS per Capita 23 The table below lists for 2018 the five…

A: Here we have to analyze the highest-income states and the lowest-income states exhibit convergence…

Q: Compare the growth rates in Hong Kong, Korea, Singapore, Taiwan, China, and the United States. In…

A: Growth rate of GDP:The growth rate of GDP refers to the percentage change in a country's Gross…

Q: True or False: Countries that currently have low real GDPs per capita are destined to always have…

A: A lower real GDP population has a lot to do because there is a potential to expand faster than…

Q: a) the profit maximizing decisions of an individual manufacturer. b) economic growth. c) the rate…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: Suppose that India is currently growing at a rate of 14% per year and is producing real GDP per…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: In 2018, the country of Questville had a GDP of $39000.00 and the country of Mistania had a GDP of…

A: Gross domestic product is the country's final goods and services. The economic outcome is measured…

Q: Consider two distinct countries, denoted as A and B. Initially, Country A had a per capita GDP of…

A: To determine which country will have a higher per capita GDP when t=35 time periods (years), we can…

Q: In a rich country A, the gross domestic product 1 per person is r = 53,000 (US dollars). In a poor…

A: GDP refers to the value of final services and goods that are produced in an economy at a particular…

Q: What is the potential impact of rapid economic growth on: a) A nation's tax base? b) GDP/Capita?…

A: Economic growth implies the upheld development in the production of goods and services inside an…

Q: a) the profit maximizing decisions of an individual manufacturer. b) economic growth. c) the rate…

A: Hi, thank you for the question. As per the guide lines, we are allowed to attempt only 3 sub-parts…

Q: (5 points) Suppose that the marginal product of capital satisfies the following condition: lim fr =…

A: Solow Growth model is an exogeneous model of growth that analyzes changes in the level of output in…

Q: a) the profit maximizing decisions of an individual manufacturer. b) economic growth. c) the rate…

A: Hi, thank you for the question. As per the guidelines, we will answer the first question. Since the…

Q: Country alpha and beta initially have the same real GDP per capita. Country Alpha experiences no…

A: The objective of the question is to find out how much larger Country Beta's GDP will be compared to…

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Country Able and Country Baker initially have the same real GDP per capita. Country Able experiences no economic growth, while Country Baker grows at a sustained rate of 7 percent. In 12 years, Country Baker's GDP will be approximately ___________ that of Country Able. Group of answer choices one-fourth triple one-half double
Suppose the U.S. GDP is double China's, but the growth rate is 7.0% in China and 4.6% in the United States. At that rate, China's GDP will surpass that of the United States in ____ years.
Suppose that India is currently growing at a rate of 14% per year and is producing real GDP per capita equal to $7,000, whereas the United States is currently growing at a rate of 5% per year and is producing real GDP per capita equal to $28,000.a) How long will it take India to double its real GDP per capita?b) How long will it take the United States to double its real GDP per capita?c) How much will India's real GDP per capita be in 20 years?d) How much will the USA's real GDP per capita be in 14 years?
Country A and Country B happen to have the same GDP per capita. The standard of living is said to be higher in Country A than in Country B. This could be because ________. the workforce in Country A is relatively bigger productivity is relatively greater in Country A the same goods and services are relatively more costly in Country A high income disparity in Country B prevents its GDP per capita from giving a full picture of the well-being of its people
Country alpha and beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 10 percent. In 14 years, Country Beta's GDP will be approximately that of Country Alpha one-half double quadruple one-fourth
In a rich country A, the gross domestic product 1 per person is r = 53,000 (US dollars). In a poor country B, the GDP per person is p = 7,000. Suppose that the GDP of country A grows by 5% per year, and that an economic miracle in country B begins to propel a growth of 9% per year. Assume these growth rates are constant. 1) Over how many years does the absolute difference in GDP between rich country A and poor country B increase? 2) How many years does it take for the GDP of country B to exceed that of country A? (Justify your answers.)
If country A has currently GDP per capita of $65,000 and economic growth rate of 2%, and Country B has GDP per capita of $12,000 with economic grow rate of 6%. Roughly in how many years country B can catch up with country A in GDP per capita? a) 26 years b) 13 years c) 44 years d) 88 year
Compare the growth rates in Hong Kong, Korea, Singapore, Taiwan, China, and the United States. In terms of real GDP per person, how far is China behind these others? The growth rates in Hong King Korea, Singapore, Taiwan, china_____the growth rate in the United States. In terms of real GDP per person, China is_______
Real GDP per capita in the country of Arcadia grew from about $4,703 in 1900 to about $42,731 in 2008, which represents an annual growth rate of 2.06 percent . if the arcadia continues to grow at this rate, calculate the number of years when its real GDP per capita will double_____ years . ( enter your response as an integers)
a) the profit maximizing decisions of an individual manufacturer. b) economic growth. c) the rate of inflation. d) the rate of unemployment. Question 2. When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being: a) low inflation b) balanced budget c) prudent monetary policy d) assuring competition between firms Question 3. If macroeconomics looks at the economy as a whole, it focuses on which of the following? a) the division of labor b) households c) business firms d) unemployed people Question 4. In the ______________, households receive goods and services and pay firms for them. a) goods and services market b) labor market c) financial capital market d) savings market Question 5. Which of the following is included in the calculated Gross Domestic Product? a) Farmer Freddie sells his second tractor to his son. b) Suzanne buys a love seat and chair for $85 at the yard sale on the corner. c) A local ice cream store sells…
Exponential growth implies that ________. growth rates can only be positive growth rates will alternate between positive and negative values in every consecutive time period relatively large differences in growth rates will translate into small differences in the level of a quantity after many years of growing relatively small differences in growth rates will translate into large differences in the level of a quantity after many years of growing
(5 points) Suppose that the marginal product of capital satisfies the following condition: lim fr = A > (8 + n)/s. 00 L Show this model in the context of the above Solow growth model. What does this imply about the existence of a steady state? Will growth in per-capita GDP be continual?