Question

Assume real per capita GDP in West Swimsuit is $6000 while in South Darlinia it is...

Assume real per capita GDP in West Swimsuit is $6000 while in South Darlinia it is $1500. The annual growth rate in West Swimsuit is 2.33%, while in South Darlinia it is 7%. How many years will it take for South Darlinia to catch up to the real per capita GDP of West Swimsuit?

a. about 10

b. about 30

c. about 40

d. about 120

e. South Darlina will never be able to catch up with West Swimsuit

PART 2

What will the income of the two countries be when it is equal?
$________

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