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Growth Rates Compounding Problem 1 (a) If GDP p.c. in 2010 was 750 and is growing at 4%, in what year will GDP p.c. = 1000 ? (b) Suppose the GDP p.c. of a country was 200 in 2008 and is growing at a rate of 5% per annum. What will the GDP per capita be in 2020 ? Problem 5 Consider the income distribution of a country, given in Figure 1 below. Line A shows the distribution in 1990 and line B shows it for 2000. a. Consider the 2$/ day poverty line. How many households are at the poverty line in 1990 ? b. Has the number of poor households increased or decreased between 1990 and 2000 ? Growth Rates Compounding Problem 1 (a) If GDP p.c. in 2010 was 750 and is growing at 4%, in what year will GDP p.c. = 1000 ? (b) Suppose the GDP p.c. of a country was 200 in 2008 and is growing at a rate of 5% per annum. What will the GDP per capita be in 2020 ? Problem 5 Consider the income distribution of a country, given in Figure 1 below. Line A shows the distribution in 1990 and line B shows it for 2000. a. Consider the 2$/ day poverty line. How many households are at the poverty line in 1990 ? b. Has the number of poor households increased or decreased between 1990 and 2000