Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 31, Problem 1.3P
To determine
Annual growth rate in real
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The table below shows the level of real GDP and real GDP per capita growth rates for a select set of countries for the year 2016.
Determine the number of years it will take for the standard of living to double in each country.
Instructions: Round your answers to one decimal place.
Growth Rates and the Rule of 72
Country
Real GDP (millions)
Growth Rate of Real GDP per Capita (percent)
Number of Years for Standard of Living to Double
Canada
$1,445,260
0.8%
Madagascar
37,297
1.8
Philippines
843,692
5.1
Sweden
488,759
2.8
United States
12,341,233
0.2
Please answer all the questions below with a detailed and 100% correct solution.
The following table shows World Bank estimates for world GDP from 2005 to 2014, both in nominal and real terms (real GDP is calculated using a fixed weights method, using 2005 as a base year). How do you explain the discrepancy between nominal and real GDP in 2014? How do you explain the evolution of world’s real GDP growth rate from 2005 to 2014?
Chapter 31 Solutions
Principles of Economics (12th Edition)
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