If in 2008 China’s real GDP is growing at 9 percent a year, its population is...

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?

Expert Solution

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 . )

Rahul Sunny answered 1 year ago

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