In 2016, the country of Boxtown had a GDP of 47400 and the country of Portlandia...

 

Transcribed Image Text:

In 2016, the country of Boxtown had a GDP of 47400 and the country of Portlandia had a GDP of 23700, which is half, or 50% of Boxtown's GDP. If Boxtown grows at the slow rate of 0.5% for 5 years while Portlandia grows at the fast rate of 8.5% for 5 years, what will Portlandia's GDP be as a percentage of Boxtown's GDP in 5 years from now? T Does this example illustrate the concept of convergence? OYes ONO In 2016, the country of Boxtown had a GDP of 47400 and the country of Portlandia had a GDP of 23700, which is half, or 50% of Boxtown's GDP. If Boxtown grows at the slow rate of 0.5% for 5 years while Portlandia grows at the fast rate of 8.5% for 5 years, what will Portlandia's GDP be as a percentage of Boxtown's GDP in 5 years from now? T Does this example illustrate the concept of convergence? OYes ONO

Answer rating: 100% (QA)

To calculate Portlandias GDP as a percentage of Boxtowns GDP in 5 years we need to project the GDP o... View the full answer