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A country aims to double real GDP per capita in the next 25 years. If the rate of population growth in the country is 1.5% per year then at approximately what rate does real GDP need to grow to achieve
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23 votes
23 votes
A country aims to double real GDP per capita in the next 25 years. If the rate of population growth in the country is 1.5% per year then at approximately what rate does real GDP need to grow to achieve this goal

User AfromanJ
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1 Answer

15 votes
15 votes

Answer: 4.3%

Step-by-step explanation:

Real GDP growth rate = GDP per Capita growth rate + Population growth rate

GDP per capita growth rate:

One can use the rule of 70 to calculate the length of time it would take something to double:

Years = 70 / rate

rate * years = 70

Rate = 70 / years

= 70/25

= 2.8%

Real GDP growth rate = 2.8% + 1.5%

= 4.3%

User Jason Miller
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2.9k points
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