Question

Growth rate of Chinas GDP is 7% per year, and Chinese GDP is 8 trillion. how...

Growth rate of Chinas GDP is 7% per year, and Chinese GDP is 8 trillion. how long will it take take for China's GDP to be 64 trillion, using rule of 70?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

According to rule of 70, any investment can be doubled in X years when the rate of increase in the investment is given as g and the rule is X = 70/g.

Now If Chinese GDP is 8 trillion it will be 16 trillion (doubled) after 70/7 = 10 years. From 16 trillion, it will be 32 trillion (doubled) after 70/7 = 10 years that is a total of 20 years. Similarly, from 32 trillion, it will be 64 trillion (doubled) after 70/7 = 10 years that is a total of 30 years

Hence a total of 30 years are needed for China's GDP to be 64 trillion from 8 trillion.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
3. Country B’s current GDP is $500,000. It is growing at the rate of 8% per...
3. Country B’s current GDP is $500,000. It is growing at the rate of 8% per year. It has a current population of 5,000 which is growing at 1.5% a year. (a) Using the rule of 70, how long will it be before Country B’s GDP doubles (round off to the nearest value)? What will it’s per-capita GDP be in that year? (b) Using the rule of 70, how long will it be before Country B’s population doubles (round off...
China's real GDP in 2016 was 11 trillion dollars. The Chinese economy can be described by...
China's real GDP in 2016 was 11 trillion dollars. The Chinese economy can be described by the following equations (gures are in billions of dollars): Y = 11; 000 G = 3; 000 T = 1; 000 C = 3000 + 0:25(Y - T) I(r) = 3500 - 200r (a) Compute Chinese national saving, private saving, and the interest rate that would balance Chinese saving and investment (assuming a closed economy.) (b) Obviously, China is not a closed economy. What...
32. If real GDP increases from $14.8 trillion one year to $14.9 trillion in the next...
32. If real GDP increases from $14.8 trillion one year to $14.9 trillion in the next year, which will be true? A) the GDP gap has probably become smaller B) economic growth is below the long-term trend rate C) economic growth is above the long-term trend rate D) economic growth is about the same as the long-term trend rate E) both A) and C) Ans: B Please explain the question.
GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government...
GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion. What is the government budget balance? (Please show how you got the answer)
The rate of growth of real GDP is 8​%, and the rate of growth of the...
The rate of growth of real GDP is 8​%, and the rate of growth of the population is 6​%. The rate of growth of per capita real GDP is __​%. (Round your response to the nearest whole​ percent.)
1. Suppose that the annual rates of growth of real GDP of Econoland over a five-year...
1. Suppose that the annual rates of growth of real GDP of Econoland over a five-year period were sequentially as follows: 3 percent, 1 percent, -2 percent, 4 percent, and 5 percent. What was the average of these growth rates in Econoland over these 5 years? What term would economists use to describe what happened in year 3? If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have...
lumn of the table. Real GDP (Y) Aggregate Expenditures (Trillions of dollars per year) G=$1 trillion...
lumn of the table. Real GDP (Y) Aggregate Expenditures (Trillions of dollars per year) G=$1 trillion G=$1.50 trillion (Trillions of dollars per year) (Trillions of dollars per year) 0 1.25 1 2.00 2 2.75 3 3.50 4 4.25 5 5.00 6 5.75 7 6.50 8 7.25 9 8.00 10 8.75 The increase in government spending from G=$1 trillion to G=$1.50 trillion results in shift of the AE curve, causing in equilibrium real GDP that is than the change in government...
Which is (are) TRUE? I. The rule of 70 states that if the annual growth rate...
Which is (are) TRUE? I. The rule of 70 states that if the annual growth rate of GDP per capita is x percent, it will take (70 ÷ x) years for it to triple. II. For most of recorded human history, there was no long-run growth in real per capita GDP. III. Economic growth refers to the growth rate of nominal per capita GDP. II and III only b. II only c. I only d. I and III only 1
Exercise 2.4 In 2021, the nominal GDP of Scotland was USD 26.678 trillion. The nominal GDP...
Exercise 2.4 In 2021, the nominal GDP of Scotland was USD 26.678 trillion. The nominal GDP is expected to reach USD 23.345 trillion in 2022. In comparison, the real GDP of Scotland in 2021 stood at USD 20.987 trillion. The nation’s real GDP is then expected to become USD 22.765 trillion in 2022.    Based on the information presented above, calculate the following macroeconomic indicators for years 2021 and 2022. Calculate the GDP price deflator in years 2021 and 2022.                                                                                              Determine...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT