.1 Study Plan Problem 2 Question Help The table provides some data on real GDP a
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.1 Study Plan Problem 2 Question Help The table provides some data on real GDP and the population of Japan in 2009 and 2010 Calculate the economic growth rate and the growth rate of real GDP per person. Calculate the approximate number of years it takes for real GDP Japan to double if the population growth rate is maintained and the real GDP economic growth rate returns to 3 percent a year Real GDP (trillions of yen) 525 535 Population Year 2009 2010 (millions) 127.6 127.5 per person in The economic growth rate is 1.90 percent. >>>Answer to 2 decimal places. The growth rate of real GDP per person is percent. >>>Answer to 2 decimal places.Explanation / Answer
i. Economic growth = (535 - 525)*100/525 = 1.90
Population growth rate = (127.6 - 127.5)*100/127.6 = - 0.08%
ii. Growth rate of real GDP per person = economic growth rate - population growth rate
=1.90 - (-0.08)
=1.98
iii. Assuming a population growth rate of -0.08% and real GDP growth rate of 3%, the growth rate real GDP per person is 3.08%
To find the number of years it will take to double the real GDP per capita, we can use the rule of 70 concept.
number of years it takes to double the real output per person = 70/3.08 = 22.72
That is it will take approximately 23 years.
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