Australia’s real GDP was $A1,730 billion in 2017 and $A1,782 billion in 2018. Australia’s population was...

Australia’s real GDP was $A1,730 billion in 2017 and $A1,782 billion in 2018. Australia’s population was 24.6 million in 2017 and 25.0 million in 2018. Calculate

The growth rate of real GDP.
The growth rate of real GDP per person.
The approximate number of years it will take for real GDP per person in Australia to double if the current real GDP growth rate and population growth rate are maintained.

Expert Solution

a) Growth rate of real GDP

= (1782-1730)/1730*100

= 3%

b) Real GDP in 2017 = 1730/24.6 = 70325.2

Real GDP in 2018 = 1782/25 = 71280

Growth rate of Real GDP

= 71280-70325.2/70325.2*100

= 1.36%

c) As per the rule of 70, the GDP doubles in 70/R where R is the growth rate

so, = 70/1.36

= 51.47 years

Rahul Sunny answered 2 years ago

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