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Long-Run Economic Growth – End of Chapter Problems 2. The accompanying table shows the average annual...

Long-Run Economic Growth – End of Chapter Problems

2. The accompanying table shows the average annual growth rate in real GDP per capita for Argentina, Ghana, and South Korea, using data from World Bank, World Development Indicators, for the past few decades.

a. For the 10-year periods indicated, use the Rule of 70 to calculate how long it would take for that country’s real GDP per capita to double. Round your answers to one place after the decimal point.

Average annual growth rate of
real GDP per capita
(millions per year)
Years Argentina Ghana South Korea
1965 – 1975 1.92% -1.13% 8.29%
1975 – 1985 -1.42 -2.29 7.08
1985 – 1995 1.54 1.70 8.06
1995 – 2005 1.14 2.16 4.28
2005 – 2015 3.11 4.45 3.02

Argentina, using the average annual growth rate from 1995-2005:

Argentina's GDP will double in ? years.

Ghana, using the average annual growth rate from 1985-1995:

Ghana's GDP will double in ? years.

South Korea, using the average annual growth rate from 2005-2015:

South Korea's GDP will double in ? years.

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