**Problem Statement:***If real GDP grows at an annual rate of 1.19%, then we can expect real GDP to double in approximately how many years? Enter a number rounded to two decimal places.***Guidance for Solution:**To solve this problem, you can use the Rule of 70, a common method for estimating the number of years required to double an investment or a value at a consistent annual growth rate.**Rule of 70 Formula:**\[ \text{Doubling Time (years)} = \frac{70}{\text{Growth Rate (\%)}} \]**Example Calculation:**Given a growth rate of 1.19%, the estimated doubling time of the real GDP would be:\[ \frac{70}{1.19} \approx 58.82 \text{ years} \]Therefore, it would take approximately 58.82 years for the real GDP to double at an annual growth rate of 1.19%.

We will use the rule of 70 to calculate how many years will it take for the GDP to become its…

Answered: If real GDP grows at an annual rate of…

If real GDP grows at an annual rate of 1.19% then we can expect real GDP to double in approximately how many years? Enter a number rounded to two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: How does per capita GDP in the following countries "stack up" against America's ( in percentage…

Q: iginal. The following table gives a country Nominal GDP for 2021 and 2022 in billions of US dollars:…

A: ### a. Calculate real GDP for 2021 and 2022, using the given GDP deflator.Real GDP is calculated…

Q: The following table gives real GDP figures for an economy for four years. Fill in the growth rate…

A: Growth rate: The growth rate is the percentage change in a variable over a specific period.Average…

Q: Assume GDP of a (tiny) country at time zero is equal to $133.00. Calculate GDP 11 years later if the…

A: The objective of the question is to calculate the GDP of a country 11 years later given the initial…

Q: What is real GDP per capita if a country's real GDP is $6.98 trillion and that country's population…

A: GDP per capita is the ratio of total Gross domestic product and total population .

Q: Does the GDP really measure happiness? Why or why not?

A: Gross Domestic Product is the value of all goods and services that are produced within the…

Q: True/ False. Real GDP is a better indicator of economic growth than nominal GDP.

A: GDP stands for gross domestic product which means the total market value of final goods produced…

Q: The following table gives nominal GDP, real GDP, and the population for two years. Find per capita…

A: Gross Domestic Product is the sum of all value added of a given economy. Value added is the…

Q: Nominal GDP for this simple economy in year 1 equals

A: GDP is the value of all final goods and services produced in an economy in a given period of time.…

Q: Differentiate between Actual dollars and Constant dollars?

A: A continuous increase in the general price level is referred to as inflation. An increase in the…

Q: Is it possible to figure out nominal GDP and real GDP of each three years with no price or quantity…

A: Nominal GDP refers to the value of GDP which is not adjusted to inflation whereas real GDP refers to…

Q: Assume that an economy currently has a nominal GDP of $500 billion. If the economy were to grow at…

A: Given Nominal GDP = 500 Billion $ Growth rate = 3 %

Q: According to the figure showing 2020 GDP for selected countries, how much larger (in percentage…

A: GDP is the sum total of market value of final goods and services produced in a country during a…

Q: Assume GDP of a (tiny) country at time zero is equal to $153.00. Calculate GDP 17 years later if the…

A: Let the present value = 153. Rate of growth = 7% = 0.07 T = 17 years

Q: What is real GDP per capita if a country's real GDP is $5,968 billion and that country's population…

A: Real GDP per capita, also known as per capita income or income per person, is a macroeconomic…

Q: Why might per capita GDP be only an imperfect measure of a country's standard of living?

A: The main components or indicators of the GDP in an economy are the consumption, investment and…

Q: Suppose that real GDP was $2265 billion in 2018 and $2285 billion in 2019. Calculate the growth rate…

A: Given:GDP in 2018=$2265GDP in 2019=$2285

Q: In 2014, New Zeland changed its method of calculating real GDP growth rate, substituting fixed…

A: Oceania is a linked region with various governments and territories, each with its own particular…

Q: In year 2012, the size of an economy is equal to $15 trillion; in 2013, it increases to $16.5…

A: Given that: GDP2012 = $15 tnGDP2013 = $16.5 tn Let us calculate the growth rate: g = GDP2013 -…

Q: Why do economists prefer to use real gross domestic product (RGDP) instead of nominal gross domestic…

A: GDP, often known as the national income of the economy in this context, measures the production of…

Q: uppose the u.s. nominal GDP increases from one year to the next year. Can you conclude that these…

A: The nominal GDP is the measure of GDP which is being calculated by multiplying the current year…

Q: Between the start of 2012 and the start of 2013, a country’s economic growth rate was 4 percent. Its…

A: The GDP is an indicator of a nation's economic production during a given time frame, often one year.…

Q: In 2018, India was the world’s seventh largest economy, with a $2.69 trillion GDP (as measured in…

A: GDP is the indicator utilized across the globe to demonstrate the wellbeing of a country's economy:…

Q: Why do economists measure growth in real terms as opposed to nominal terms? Explain why real GDP a…

A: The economics as a study is based upon the basic and the most important idea of scarcity. The…

Q: There are two economies. At the beginning of Year 1, their real GDPs are equal. Economy A grows at a…

A: Standard national income estimates are commonly employed in assessments of economic growth, living…

Q: Country A produces GDP according to the following equation: GDP = 5√K. The country has a savings…

A: A steady-state economy seeks to strike a balance between increases in output and population growth.…

Q: GDP = $3,10,000 is this really a number?

A: Gross domestic product (GDP) measures the market value of final goods and services produced by a…

Q: Suppose a country a real GDP of $159. What will the size of the GDP be after 14 years if the economy…

A: Gross domestic product (GDP) growth is the rise in a nation's GDP over a predetermined amount of…

Q: tatisticians measure GDP?

A: GDP (Gross Domestic Product): It refers to the production of goods and services in an economy which…

Question

**Problem Statement:**

*If real GDP grows at an annual rate of 1.19%, then we can expect real GDP to double in approximately how many years? Enter a number rounded to two decimal places.*

**Guidance for Solution:**

To solve this problem, you can use the Rule of 70, a common method for estimating the number of years required to double an investment or a value at a consistent annual growth rate.

**Rule of 70 Formula:**

\[ \text{Doubling Time (years)} = \frac{70}{\text{Growth Rate (\%)}} \]

**Example Calculation:**

Given a growth rate of 1.19%, the estimated doubling time of the real GDP would be:

\[ \frac{70}{1.19} \approx 58.82 \text{ years} \]

Therefore, it would take approximately 58.82 years for the real GDP to double at an annual growth rate of 1.19%.

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

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 A produces GDP according to the following equation: GDP = 5√K. The country has a savings rate of 16.3% and 8.1% of capital depreciates every year. What is this country's steady state amount of GDP? Round your final answer to two decimal places.
The table below shows data over several years for a country's real GDP, the number of full-time employed workers (E), and the annual average number of hours worked per worker (H). a. & b. For each of the four years, compute real GDP per worker-a standard measure of labour productivity and a slightly more complex measure of labour productivity-real GDP per hour worked. (Round your answers to the nearest cent.) Year 1 5 10 15 Real GDP $525 billion $574 billion $655 billion $767 billion Full-time Employed Workers (E) 12.7 million 13.5 million 14.5 million 15.2 million Number of Hours Worked per Worker (H) 2011 1961 1937 1905 GDP E GDP EXH
If a nation's real GDP is growing by 6 percent per year, its real GDP will double in approximately ________. Answer to 2 decimal places.
Describe the various components of fluctuations in economic activity over time. Because economic activity fluctuates, how is long-term growth possible?
An emerging country has a real GDP of $1532.8 billion. After one year, real GDP has grown to $1.640 x 103³ billion.. percentage terms, what is the growth rate? Please round your answer to the nearest whole number. Macmillan Learning growth rate: de
If a country's initial real GDP is $54,504 and its yearly growth rate of GDP is 3.9%, use the Rule of 70 to determine approximately how many years it would take for this economy to double its GDP. Round your answer to two digits after the decimal.
Could a country experience a fall in population and a rise ib real gdp at the same time