Question

If the population growth rate is 2​ percent, real GDP per person will double in 7 years if real GDP grows by​ ______ percent per year.

Answer 1

With a population growth of 2%, the GDP has to grow 12.6% per year in order to real GDP per person double in 7 years.

Step-by-step explanation:

It is necessary to state the formula to calculate the GDP growth per person in 7 years and some assumptions. Defining as base of population and GDP the number 100 (aleatory picked) we can write our equation: GDP per person in year 7 = 100(1+x)^7/100(1+0.02)^7=2 In this equation X is the fixed percentage of GDP growth. By iteration process, we get that X=12.6%