Question

The following GDP per capita values are all measured in PPP adjusted international dollars, using constant...

The following GDP per capita values are all measured in PPP adjusted international dollars, using constant prices. In 2010, U.S. GDP per capita was $49,412 and in 2017 it was $54,347. Chinese GDP per capita was $9,443 in 2010 and $15,175 in 2017.

a. Calculate the average growth rate of GDP per capita for both countries between 2010 and 2017, assuming discrete growth!

b. Assume that both countries continue to grow at the same speed as you calculated in the previous part. Using your favorite spreadsheet software (Google Docs, Excel or similar), plot projected GDP per capita for both countries for 50 years, starting in 2017. Will China’s standards of living be larger than those of the U.S. at any point during those 50 years? (Include the plotted graph here.)

c. Using discrete growth, calculate the number of years that it takes for China to take over (rounding to one decimal)!

d. In 2010 China’s population was 1,341 million and in 2017 it was 1,390 million. The U.S. population was 310 million in 2010 and 326 million in 2017. Calculate the average population growth rate for both countries, once again assuming discrete growth.

e. Assuming that the populations growth at the same speed each year in the future, how much larger will Chinese total real GDP be compared to the U.S. in the year that standards of living become higher for China for the first time?

Homework Answers

Answer #1

a) $49,412*(1+growth rate)^7 = $54,347
1+growth rate = 1.014
growth rate = 1.4%
$9,443*(1+growth rate)^7 = $15,175
1+growth rate = 1.07
growth rate = 7%

b)

Use the formulas:
$15,175 *1.07^years
$54,347 *1.014^years

c) $15,175 *1.07^years = $54,347 *1.014^years
(1.07/1.014)^years = $54,347/$15,175
1.055^years = 3.58
years = 23.7

d) 1341*(1+growth rate)^7 = 1390
1+growth rate = 1.005
growth rate = 0.5%
310*(1+growth rate)^7 = 326
1+growth rate = 1.007
growth rate = 0.7%

e) real gdp = GDP per capita (2041) * total population (2041)
GDP per capita (2041) = $15,175 *1.07^24
total population (2041) = 1390*(1+0.5%)^24
real GDP = 127,475,844.8

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The table below provides information about real GDP (measured in billions of dollars) and population (measured...
The table below provides information about real GDP (measured in billions of dollars) and population (measured in millions) for four countries. Please calculate the indicated values to fill in the table. Round all answers to the nearest whole number. USA Mexico Botswana China 1980 RGDP 2,857.33 404.79 1.8 306.87 1980 population 227.225 67.761 0.897868 981.235 2016 RGDP 18,707.15 2,369.01 37.4 21,316.91 2016 population 323.071 123.333 2.159 1,378.665 1980 RGDP per capita: USA $ Mexico $ Botswana $ China $ 2016...
The following table depicts statistics on GDP per capita (ie, GDP/population) in column (1) and its...
The following table depicts statistics on GDP per capita (ie, GDP/population) in column (1) and its growth rate for the country groups (column 2) defined by GDP levels (High-income, Middle-income and Low-income). They are all expressed as real (constant) GDP. A B C Country group GDP per capita (Year 2010) Average annual growth rate of real GDP per capita (Year 2000-2010) GDP per capita (Year 2088) High-income 38,293 0.9% 77024.76 Middle-income 3,980 4.8% 154192.5 Low-income 507 3.0% 5085.24 Throughout this...
GDP per Capita Growth and Rule of 72 Current Year Previous Year Growth Rate Real GDP...
GDP per Capita Growth and Rule of 72 Current Year Previous Year Growth Rate Real GDP $8.4 trillion $8.0 trillion Population 202 million 200 million GDP per Capita $ $ Formulas you could use: Growth Rate in percentage = (Current year value – previous year value)/ previous year GDP per Capita = Real GDP/population (Ch6 Section 6.4) Future value = Present value x (1 + growth rate)^number of years (Ch7 Section 7.2) Rule of 72: 72/growth rate = number of...
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions...
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2005 dollars), and population (in thousands) of the United States in 1960, 1970, 1980, 1990, 2000, and 2010. The U.S. price level rose consistently over the period 1960–2010. Year Nominal GDP (billions of dollars) Real GDP (billions of 2005 dollars) Population (thousands) 1960 $526.4 $2,828.5 180,760 1970 1,038.5 4,266.3 205,089 1980 2,788.1 5,834.0 227,726 1990 5,800.5 8,027.1 250,181 2000 9,951.5 11,216.4 282,418 2010...
1.Why is GDP per capita a better measure of well-being in a country than its natural...
1.Why is GDP per capita a better measure of well-being in a country than its natural resources? 2.When would you use the Rule of 72? 3.Say that two countries had GDP per capita of $10,000 50 years ago and today one has GDP per capita of $20,000 and the other of $40,000. Explain why this second country had or did not have twice the annual growth rate of the first country. 4.For this question, first calculate and report the per...
Web-Based Question: Per Capita GDP and the Growth Rate of GDP Visit the CIA Factbook website  (Links...
Web-Based Question: Per Capita GDP and the Growth Rate of GDP Visit the CIA Factbook website  (Links to an external site.). Find the following information: Country Population GDP - Purchasing Power Parity GDP - real growth rate GDP - Per Capita U.S. 329.3 Mill 19.49 Trillion 2.2% $59,800 Japan 125.5 Mill 5.443 Trillion 1.7% $42,900 China 1.4 Billion 25.36 Trillion 6.9% $18,200 Compare and contrast the economies of the three countries based on the data you find. Draw some conclusions about...
1 ) North Dakota's GDP per capita is $65,000, while South Dakota's GDP per capita is...
1 ) North Dakota's GDP per capita is $65,000, while South Dakota's GDP per capita is $48,000. Advances in technology increase North Dakota's GDP per capita over the following decade to $78,000. If South Dakota benefits in the same way from those technologies, what will South Dakota's GDP per capita be after a decade? A) $57,600 B) $61,000 C) $65,000 D) $78,000 2 ) According to Malthus, when the standard of living in any economy is above subsistence, ________. A)...
(a) Find the GDP of Saudi Arabia (Current US Dollars) and (Constant 2011 US Dollars), Population...
(a) Find the GDP of Saudi Arabia (Current US Dollars) and (Constant 2011 US Dollars), Population of Saudi Arabia from 2016 to 2019. Using these two figures to obtain GDP per capita for 2016 to 2019 at Current US Dollars and at Constant 2011 US Dollars. Also, find the unemployment rate and inflation rate of Saudi Arabia from year 2016 to 2019. Note that it is compulsory to put your source of data at the bottom of the table, otherwise...
Figure 8-5 on Page 181 of your text displays the combined real GDP of Asia as...
Figure 8-5 on Page 181 of your text displays the combined real GDP of Asia as a percentage of the combined real GDP of the entire world. The figure displays this percentage according to two different measures. One measure uses prevailing exchange rates in currency markets to adjust all countries’ real GDP levels to allow for comparisons. The other measure uses purchasing power parity adjustments. Utilizing market exchange rates indicates that Asian real GDP’s share of global real GDP generally...
Questions 1. Which market entry strategy is Walmart primarily using to enter foreign markets, and why...
Questions 1. Which market entry strategy is Walmart primarily using to enter foreign markets, and why has management chosen this approach? Yao Ming, Jackie Chan, and Walmart: China Embraces Big Stars and Big-Box Retailing (as cited in Daft, R. and Marcic, D. management: The new workplace, 8e) When you’re an American retailer with thousands of stores spread liberally throughout the best shopping areas of the United States, at some point the question arises: “What next?” Top brass at Walmart were...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT