### The Wealth of Nations and Economic Growth: Work It Out 1 of 1Italy is a relatively rich country with a per-capita GDP of $28,000. India is a relatively poor country with a per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find out how many years it will take for India's per capita GDP to equal Italy's current per-capita GDP of $28,000.**How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?**India's per-capita GDP must double _____ times.**Use the rule of 70 to find how many years it will take for India's per-capita GDP to double once at a 5% growth rate.**Doubling time: _____ years**How many years will it take for India to reach Italy's current level of GDP per capita?**It will take _____ years for India to reach Italy's current level of GDP per capita.---### Explanation of Terms:**Rule of 70:** The Rule of 70 is a way to estimate how long it will take for a quantity to double, given a specific annual growth rate. Simply divide 70 by the annual growth rate to get the doubling time in years.For example, if the annual growth rate is 5%, the doubling time would be:\[ \text{Doubling Time} = \frac{70}{5\%} = \frac{70}{5} = 14 \text{ years} \]

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

Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India's per capita GDP to equal Italy's current per-capita GDP of $28,000. How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?

Italy is a relatively rich country with per-capita GDP of $28,000. India is a relatively poor with per-capita GDP of only $3,500. However, India is growing rapidly at a growth rate of 5% per year. We want to find how many years it will take for India's per capita GDP to equal Italy's current per-capita GDP of $28,000. How many times must India's per-capita GDP double in order to reach Italy's per-capita GDP?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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