The Real GDP Per Capita in an Economy Increases at a Rate

question 128

Essay

The real GDP per capita in an economy increases at a rate of 2.6 percent. Calculate the number of years that it takes for real GDP to double. Assuming that the current GDP per capita is $40,000 and the growth rate will be on average 2.6 percent, how much will GDP per capita be after 10 years? After 20 years? After 30 years? Draw a graph to show approximately the evolution of this economy for the next 30 years.

---

Definitions:

Sandwich Generation

Those who carry the double responsibilities of taking care of both an elderly relative and their own children.

Ego-integration Stage

A later stage in life where individuals seek to understand and accept their lives and achievements, often associated with late adulthood.

Second Honeymoon Stage

A phase in a relationship or marriage characterized by a renewed sense of love, interest, and romantic connection, often after overcoming challenges.

Individualistic Stage

A phase in human development characterized by an emphasis on personal achievements and independence, often contrasted with collectivist values.