Question

Australia's real GDP was 815 billion dollars in 2005 and 841 billion dollars in 2006. Australia's population growth rate in 2006 was 1.24 percent. Calculate the growth rate of real GDP and the growth rate of real GDP per person in Australia in2006. The growth rate of real GDP in Australia in 2006 was percent. Answer to 1 decimal place. The growth rate of real GDP per person in Australia in 2006 was percent. Answer to 1 decimal place. The approximate number of years it takes for real GDP per person in Australia to double if the 2006 growth rate of real GDP and population growth rate are maintained is . Answer with a whole number.

Answer 1

Step-by-step explanation:

The computation is shown below:

1. Growth rate of real GDP = (Dollars in 2006 - Dollars in 2005) ÷ Dollars in 2005

= (841 billion - 815 billion) ÷ 815 billion

= 26 billion ÷ 815 billion

= 3.19%

2. The Growth rate of real GDP per person = Growth rate of real GDP - population growth rate in 2006

= 3.19% - 1.24%

= 1.95%

3. Approximate number of years = 70 ÷ annual growth rate

= 70 ÷ 1.95%

= 35.89 or 36 years

Here, 70 means the rule of 70 applies to find out the estimated number of years