Suppose That South Korea Is Growing at 7% Per Year

question 227

Multiple Choice

Suppose that South Korea is growing at 7% per year and is producing real GDP per capita of about $28,000, while Norway is growing at 3.5% per year and is producing real GDP per capita of $56,000. If all else stays equal, the real GDP per capita for these two countries will converge in:

• A)40 years.
• B)20 years.
• C)10 years.
• D)4 years.

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Definitions:

Neutral

A position or stance that does not favor either side in a dispute, competition, or selection.

Information Rehearsal

The mental process of repeatedly going over information in order to remember it.

Memory Retrieval

The process of recalling or bringing into consciousness information from memory storage.

Memory Encode

The process of converting information into a form that can be stored in the brain.