Question
Hello. I am having difficulties understanding the applied aspect of macroeconomics. Please help me understand it further. Here is the situation: A country has a
Hello. I am having difficulties understanding the applied aspect of macroeconomics. Please help me understand it further. Here is the situation:
A country has a real capita income of 3850 US Dollars.
If the country is able to sustain the average increase in real GDP to 6% per year and a population of 2% in growth per year, how many years will it take for this per capita income to double to 7700 US Dollars?
If the average increase in real GDP goes down to 2% per year and the population grows at 3%, how many years will it take for per capita income to double?
Along with the computations, may you also help me explain why the answers are the way they are through in-depth explanations?
Thank you tutor.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started