ECON 1010 Lecture Notes - Real Wages, Production Function, Workforce Productivity

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turquoisemosquito379

29 Mar 2014

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The growth rate of real gdp per person can also be calculated. Real gdp per person grows only if real gdp grows faster than the population. Sustained growth of real gdp per person can transform a poor/society into a wealthy one. Suppose a country"s pop grow by 2% a year at the same time its real gdp grows by 5 percent a year. The growth rate of real gdp per person is approximately to 5%-2%= 3% It is used to estimate how long it will take the level of any variable to double. A country"s current growth rate of real gdp per person is 2 percent a year. Real gdp per person doubles in 35 years ( 70 divided by 2 = 35) Canada experienced the slowest economic growth in 1980s. Canada experienced the highest economic growth in the 1960s. In 1980s, canada had the second highest real gdp per person.

Related Questions

Read the news clip, then answer the following question

News Clip:

India's current growth averaged 8.5 percent a year over the past four years. This growth rate is sustainable, but a rate of 10 percent was possible if reforms were introduced. The OECD suggests that ongoing economic liberalization could help the country double its real GDP per person in 10 years.

Question:

By raising the real GDP growth rate from 8.5 percent a year to 10 percent a year and maintaining a constant population growth rate, real GDP per person will double ______ years earlier.

A) 2.7

B) 10.0

C) 12.7

tealelephant799

The following table reports real GDP per person for several different economies in the years 1960 and 2000. It also gives each economy's average annual growth rate over this period. For example, real GDP per persion in Senegal was $1,776 in 1960 and actually declined to $1,571 by 2000. Senegal's average annual growth rateduring this period was -0.31%, and it was the poorest economy in the table in the year 2000.

The real GDP per person figures are denominated in U.S. dollars with the base year of 1996. The following questions help you to understand the different growth experiences of the economies in the table.

Real GDP per person

economy: Singapore, Senegal, France, Austria, India, China
1960 ($):4,219, 1776, 8531, 8444, 892, 448
2000($): 29434, 1571, 25045, 27000, 2644, 4002
growth rate (%) : 4.98, -0.31, 2.73, 2.95, 2.75, 5.63

1. Which economy had the highest level of real GDP per person in the year 2000?
a. China
b. France
c. Singapore
d. Austria

2. In which economy did real GDP per person grow at the fastest rate from 1969 to 2000?
a. China
b. France
c. Singapore
d. Senegal

3. Consider the following list of four countries. Which economy began with a level of real GDP per person in 1960 that was well below that of France and grew fast enough to catch up with and surpass France's real GDP per person by 2000?
a. China
b. France
c. Singapore
d. Senegal

greysea-lion209

The Rule of 70 states that the number of years it takes for the level of any variable to? ______ is approximately? ______.

A.?double; 70 divided by the annual percentage growth rate of the variable

B.increase by a factor of? 70; 1/70 multiplied by the annual percentage growth rate of the variable

C.?double; 70 multiplied by the annual percentage growth rate of the variable

D.increase by a factor of? 70; 70 divided by the annual percentage growth rate of the variable

If real GDP per person doubles in 20? years, then the annual growth rate of real GDP per person is? ______ percent a year.

A.14.0

B.28.5

C.3.5

D.14.3

ECON 1010 Lecture Notes - Real Wages, Production Function, Workforce Productivity

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