If in 2012
China’s real GDP is growing at 9 percent a year, its population is growing at 1
percent a year, and these growth rates continue, in what year will China’s real
GDP per person be twice what it is in 2012?
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#Chapter23
ANSWER
ReplyDeleteThe growth rate of real GDP per person equals the growth rate of real GDP minus the population growth rate. China’s real GDP per person is growing at a rate of 9 percent – 1 percent = 8 percent. Then using the rule of 70, it will take 70/8 = 8.75 years for China’s real GDP per person to double, which means it will double in approximately 2021.