Question

Real per capita GDP in China in 1961 was about $350, but it doubled to about $700.00 by 1979. a. What was the average annual economic growth rate in China over the 18.00 years from 1961 to 1979? (NOTE: Round this to two places past the decimal point.) % b. Per capita real GDP doubled in China again in only seven years, reaching $1400.00 by 1986.00. What was the average annual economic growth rate between 1979 and 1986.00? (NOTE: Round this to two places past the decimal point.)

Answer 1

The average annual economic growth rate in China from 1961 to 1979 was 5.01%. The average annual economic growth rate between 1979 and 1986 was 9.5%.

Step-by-step explanation:

a. To find the average annual economic growth rate from 1961 to 1979, we need to calculate the growth rate based on the initial and final values. The initial value is $350 and the final value is $700. The formula to calculate the average annual growth rate is:

Growth Rate = ((Final Value / Initial Value) ^ (1 / Number of Years)) - 1

Using this formula, we get ((700 / 350) ^ (1 / 18)) - 1 = 0.0501 or 5.01%

b. For the average annual economic growth rate between 1979 and 1986, we use the same formula. The initial value is $700 and the final value is $1400. Plugging these values into the formula, we get ((1400 / 700) ^ (1 / 7)) - 1 = 0.095 or 9.5%

Answer 2

The answer is

A. 3.93%

B. 10.42%

Step-by-step explanation:

The formula for growth rate is:

[(Present value ÷ Past value)^1/n] - 1

where n is the difference between the number of years.

QUESTION A:

Present Real per capita GDP = $700.00

Past Real per capita GDP = $350.00

n is 18 years

[($700/$350)^1/18] - 1

(2^0.055556) - 1

3.93%

QUESTION A:

Past Real per capita GDP = $700.00($1,400.00÷ 2)

Present Real per capita GDP = $1,400.00

n is 7 years

[($1400/$700)^1/7] - 1

(2^0.143) - 1

10.42%