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A Puzzle: the Share of GDP Devoted to Investment Was

question 2

Essay

A puzzle: The share of GDP devoted to investment was similar for Canada and South Korea over the period 1960-1990. However, South Korea had a 7 percent growth rate of average annual income, while Canada had only a 2.5 percent growth rate. How can this be explained?


Definitions:

Pounds

A unit of weight in the imperial system, equivalent to 0.453592 kilograms.

Common Denominator

The shared multiple of the denominators of two or more fractions, allowing them to be compared or combined.

Sum

The result of adding two or more numbers or quantities together.

Product

The result of multiplying two or more quantities together.

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