Suppose country X currently produces $1000 of goods and services per year with a constant growth rate of 2.0% per year. Country Y's production is currently $800 with growth of 3.0% per year. Using the rule of 72, how long does it take for country X's production to double? Using the rule of 72, how long does it take for country Y's production to double? years After how long will the two countries have the same level of production? Estimate the level of production when the two countries produce the same amount. $ 36 years 24 years

Suppose country X currently produces $1000 of goods and services per year with a constant growth rate of 2.0% per year. Country Y's production is currently $800 with growth of 3.0% per year. Using the rule of 72, how long does it take for country X's production to double? Using the rule of 72, how long does it take for country Y's production to double? years After how long will the two countries have the same level of production? Estimate the level of production when the two countries produce the same amount. $ 36 years 24 years

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter7: Economic Growth: Theory And Policy

Section: Chapter Questions

Problem 1TY

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Question

Suppose country X currently produces $1000 of goods and services per year with a constant growth rate of 2.0% per year. Country
Y's production is currently $800 with growth of 3.0% per year.
Using the rule of 72, how long does it take for country X's production to double?
Using the rule of 72, how long does it take for country Y's production to double?
years
After how long will the two countries have the same level of production?
Estimate the level of production when the two countries produce the same amount. $
36 years
24 years

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