Author Question: Refer to the above table. If an economy's current per capita real GDP is 3,000, and if its economy ... (Read 187 times)

09madisonrousseau09 · **on:** Jun 30, 2018

Refer to the above table. If an economy's current per capita real GDP is 3,000, and if its economy grows at an constant annual rate of 5 percent for 50 years, what will be its per capita real GDP at the end of that period?

A) 21,330 B) 34,500 C) 55,200 D) 13,140

Question 2

Refer to the above table. Country A has a per capita real GDP of 1000 and B has a per capita real GDP of 10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year.

After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?
A) B is 12 times larger, or 230,000 larger on a real per capita basis.
B) B is 8 times larger, or 175,000 larger on a real per capita basis.
C) B is a little less than 2 times smaller, or almost 20,000 smaller on a real per capita basis.
D) B is a little over 6 times larger, or almost 60,000 larger on a real per capita basis.