Use the information below to answer the following questions.
Instructions: Round your answers 2 decimal places.
Real GDP Year 1 | Population Year 1 | Real GDP Year 2 | Population Year 2 | |
$370,000.00 | 34.00 | $391,571.00 | 34.85 |
Question 1:
What is the growth rate of real GDP between year 1 and 2?
___%
Question 2:
What is GDP per capital in Year 1?
$
What is GDP per capita in Year 2?
$
Question 3:
What is the growth rate in real GDP per capital between Year 1 and 2?
%
Question 4.
Using the rule of 70, how many years will it take real GDP per capita to double?
Real GDP Year 1 | Population Year 1 | Real GDP Year 2 | Population Year 2 | |
$370,000.00 | 34.00 | $391,571.00 | 34.85 |
Question 1:
What is the growth rate of real GDP between year 1 and 2?
5.83%
[(391,571-370,000)/370,000]*100
(21571*100)/ 370,000
5.83%
..
Question 2:
What is GDP per capita in Year 1?
$10882.35
370,000/34
= $10882.35
What is GDP per capita in Year 2?
$ 11235.90
391,571/34.85
= $ 11235.90
...
Question 3:
What is the growth rate in real GDP per capita between Year 1 and 2?
3.25%
[(11235.90-10882.35)/10882.35]*100
= 3.25%
..
Question 4.
Using the rule of 70, how many years will it take real GDP per capita to double?
= 21.54 years
Rule of 70 is an easy way to figure out how quickly something will double when it's growing exponentially. Just divide 70 by the percent increase, and you've got the doubling time.
70/3.25
= 21.54 years
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