In: Economics
If in 2008 China’s real GDP is growing at 9 percent a year, its population is growing at 1 percent a year, and these growth rates continue, in what year will China’s real GDP per person be twice what it is in 2008?
2017
(* First of all we need to find the growth rate of real GDP per person.
Growthrate of real GDP per person = Growthrate of real GDP- growth rate of population.
In our case, growth rate of real GDP= 9%
Growthrate of population = 1%
Growthrate of real GDP per person= 9-1=8%
* We can apply the rule of 72 to find the doubling time for real GDP per person
Doubling time=72/ real GDP per person
= 72/8
= 9 years
We need to add this with 2008
2008+9=2017
*ln 2017 China's real GDP per person will be twise than what it was in 2008 . )