In a rich country A, the gross domestic product 1 per person is r = 53,000...

 

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In a rich country A, the gross domestic product 1 per person is r = 53,000 (US dollars). In a poor country B, the GDP per person is p = 7,000. Suppose that the GDP of country A grows by 5% per year, and that an economic miracle in country B begins to propel a growth of 9% per year. Assume these growth rates are constant. 1) Over how many years does the absolute difference in GDP between rich country A and poor country B increase? 2) How many years does it take for the GDP of country B to exceed that of country A? (Justify your answers.) In a rich country A, the gross domestic product 1 per person is r = 53,000 (US dollars). In a poor country B, the GDP per person is p = 7,000. Suppose that the GDP of country A grows by 5% per year, and that an economic miracle in country B begins to propel a growth of 9% per year. Assume these growth rates are constant. 1) Over how many years does the absolute difference in GDP between rich country A and poor country B increase? 2) How many years does it take for the GDP of country B to exceed that of country A? (Justify your answers.)

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1 The absolute difference in GDP between rich country A and poor country B will increase for 10 year... View the full answer