1.12. In the CIA World Factbook, GDP per capita in the United States in 2010 was approximately...

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1.12. In the CIA World Factbook, GDP per capita in the United States in 2010 was approximately

$47,400. In Table 7.1, the formula for growth used in that spreadsheet for any given year, y1 , is y1

= Yo (1 +g), where y0 is the value of GDP in the beginning year, y1 is the value of GDP for the specific year in question, and t is the number of years after y0 . If y0 is GDP per capita in 2010 and the economy continues to grow at approximately three percent as it did in 2010, what will be the value of GDP per capita in 10 years?

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Modern Principles Macroeconomics

ISBN: 124428

2nd Edition

Authors: Tyler Cowen ,Alex Tabarrok

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