Sweden Has Real GDP Per Capita of $50,000, While Chile

question 219

Multiple Choice

Sweden has real GDP per capita of $50,000, while Chile has real GDP per capita of $25,000. If real GDP per capita in Sweden grows at 2% and Chile's real GDP per capita grows at 4%, how long will it take for real GDP per capita in the two nations to converge?

• A) 10 years
• B) 20 years
• C) 25 years
• D) 35 years

---

Definitions:

P-value

The probability of observing results as extreme as those observed in a study, under the assumption that the null hypothesis is true.

Null Hypothesis

A hypothesis in statistical analysis that assumes no significant difference or effect exists between specified populations or parameters.

Statistical Significance

An indication that the results observed in a study or experiment are unlikely to occur by chance alone, according to a predetermined threshold.

Random Sample

A selection of people drawn from a broader group, where every person has the same likelihood of being chosen.