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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