Question

​China's GDP growth target for the 12th​ Five-Year-Plan period​ 2011-2015 is 7 percent a year. This largely symbolic goal​ (China's average growth rate for the past five years was a whopping 11 percent a​ year) shows that the central government wants to fundamentally restructure the economy.

If China reduces its economic growth rate from 11 percent a year to 7​ percent, how many additional years will it take for GDP to​ double?

In what year will​ China's GDP​ quadruple?

When GDP grows at 11 percent a​ year, GDP in China doubles in ___ years.

Answer 1

China is one of the key players in world economics today, and have been growing at a steady rate despite the economic crisis which is causing serious concerns for developed countries. The main cause for this is the extended growth model in which it is able to produce goods at a fraction of the cost which other developed countries can. This makes developed countries dependent on China for their own growth.

Now, if we consider the growth rate of China to be 11% and then want it to double, then we are looking at a 100% raise in the total GDP over the years. To calculate the number of years, we can simply divide 100 by 11 which will give us about 9 years (Rounded Off) for the country to double its growth rate.

Further, if the country were to reduce its growth % to 7 percent then we can calculate the number of years to double the GDP by simply dividing 100 by 7 which is 14 years. The difference between the years if it grows at 11 percent vs 7 percent is 9-7=5 Years (Rounded Off)

Further, to Quadruple meaning to grow 4 times, we see that growth has to 400. To calculate the number of years, we can simply divide 400 by 11 which is equal to 36 years in case the development takes place at an 11 % rate and 57 years if it happens at a rate of 7% respectively.

Please feel free to ask your doubts in the comments section.