Refer to the table below to answer three questions. By how much does total outpu

Question

Refer to the table below to answer three questions.

By how much does total output (GDP) have to grow in order to raise per capita GDP in the following countries?

Instructions: Enter your responses rounded to one decimal place.

a. Japan?

     GDP must grow by more than  %.

b. China?

     GDP must grow by more than  %.

c. Zimbabwe?

     GDP must grow by more than  %.

Average Growth Rate (2000-2015) of Per Capita GDP GDP Population igh-income countries United States Canada Japan France 1.6 1.9 0.7 0.9 0.7 0.9 0.7 0.5 0 0.6 Low-income countries China Ethiopia India Burundi Haiti Libya Zimbabwe 10.3 9.6 7.5 0.5 2.7 1.5 1.6 1.5 9.8 6.9 6 0.6 0.3 1.6 3.4 1.2 0.5 1.9 1.5

Explanation / Answer

Per capita GDP is calculated as a nation's total output divided by its total population. In all nations , GDP must grow by more than the growth rate of population in order for per capita GDP to rise.

(a) Because the population in Japan is growing at an annual rate of 0%, GDP must grow by more than 0% per year for per capita GDP to grow.

(b) Because the population in China is growing at an annual rate of 0.5%, GDP must grow by more than 0.5% per year for per capita GDP to grow.

(c) Because the population in Zimbabwe is growing at an annual rate of 1.5% , GDP must grow by more than 1.5% per year for per capita GDP to grow.

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