In 2018, U.S. GDP was approximately $20 trillion, while India’s GDP was approximately $2.5 trillion. However, India is growing faster than the United States. 1. If the U.S. economy grows at 3% per year, in what year will U.S. GDP double to $40 trillion? (Hint: Use the Rule of 72 to approximate the number of years needed for GDP to double.) 2. If India’s economy grows at 7% per year, in what year will its GDP double to $5 trillion? In what year would India’s economy increase 16-fold to $40 trillion? 3. If each country’s growth rate continues at the same rate, in what year would each country’s GDP reach $80 trillion?
In 2018, U.S. GDP was approximately $20 trillion, while India’s GDP was approximately $2.5 trillion. However, India is growing faster than the United States. 1. If the U.S. economy grows at 3% per year, in what year will U.S. GDP double to $40 trillion? (Hint: Use the Rule of 72 to approximate the number of years needed for GDP to double.) 2. If India’s economy grows at 7% per year, in what year will its GDP double to $5 trillion? In what year would India’s economy increase 16-fold to $40 trillion? 3. If each country’s growth rate continues at the same rate, in what year would each country’s GDP reach $80 trillion?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
In 2018, U.S. GDP was approximately $20 trillion, while India’s GDP was approximately $2.5 trillion. However, India is growing faster than the United States.
1. If the U.S. economy grows at 3% per year, in what year will U.S. GDP double to $40 trillion? (Hint: Use the Rule of 72 to approximate the number of years needed for GDP to double.)
2. If India’s economy grows at 7% per year, in what year will its GDP double to $5 trillion? In what year would India’s economy increase 16-fold to $40 trillion?
3. If each country’s growth rate continues at the same rate, in what year would each country’s GDP reach $80 trillion?
Expert Solution
Step 1
GDP:
GDP or gross domestic product signifies the sum of values of all end commodities within the nation in a year. And GDP growth rate determines the rate at which a nation's GDP grows over a period.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education