Question

1.You deposit $600 in a savings account and one year later you have $654. At the same time, the CPI increases from 160 to 166.4. The nominal interest rate is

2.

A country aims to double real GDP per capita in the next 24
years. If the rate of population growth in the country is 1.01% per
year then at approximately what rate does **real GDP**
need to grow to achieve this goal?

Enter a number rounded to two decimal places. Do not enter a percent sign.

3.In 1988 the value of RGDP was $8,977.43 billion and the population was 299.41 million. What was the value of real GDP per capita? Round to the nearest whole number. Do not enter a dollar sign.

Answer #1

1) Nominal interest rate doesn't take account the inflation ( real interest rate does).

So nominal interest earned during year=654-600=54

Nominal interest rate=54/600]*100=54/6=9%

2)Real gdp per capita= real gdp/ population

So grown rate of real gdp per capita (approximation)= growth rate of real gdp- growth rate of population

Using rule of 70, any variable double with constant growth rate in years=70/ yearly growth rate

24=70/ yearly growth rate

Yearly growth rate=70/24=2.9

2.9= growth rate of real gdp- growth rate of population

2.9=growth rate of real gdp -1.01

Growth rate of real gdp=2.9+1.01=3.91

So real gdp needa to grow approx 3.9% to double real gdp per capita in 24 years.

3)real gdp per capita= real gdp/ population

1 billion= 1000 million,so

Real gdp=8977.43*1000=8,977,43

Real gdo per capita= 8,977,430/299.41=29,983.73~29,984

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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...

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$8.0 trillion
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202 million
200 million
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$
$
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value)/ previous year
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A
B
C
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Group of answer choices
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