Part1 (1 point) see Hint Nominal GDP in Zambia has grown rapidly in recent years

Question

Part1 (1 point) see Hint Nominal GDP in Zambia has grown rapidly in recent years. But historically, Zambla is a country that has struggled with inflation rates. The table below gives statistics for Zambia in a recent year. Nominal GDP growth rate 12.7% GDP deflator Population growth rate 1.1% 7.1% What was the rate of economic growth for Zambia? % (Round your answer to the nearest tenth.) Part 2 (1 point) See Hint If Zambia continues to grow at its current rate of economic growth, how long will it take to double the level of per capita real GDP? Round your answer to the nearest tenth. 11 OF 15 QUESTIONS COMPLETED 08/15 2 9 0

Explanation / Answer

The rate of economic growth for Zambia is
= Nominal GDP growth rate/GDP deflator growth rate
= 12.7%/7.1%
= 1.79%

The growth rate of Real GDP per capita is
= 1.79%/1.1%
= 1.62%

According to the rule of 70, the real GDP per capita will double in approximately 70/1.62% = 43.20 years or 43 years.

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