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Consider a rich country who real GDP per capita

01 / 10 / 2021 Projects

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Consider a rich country who real GDP per capita

QUESTION: Consider a rich country who real GDP per capita today is $50000, and a poorer country whose real GDP per capita today is $20000. Suppose the rich country will grow at a constant rate of 2% from now on, while the poorer country will grow at a 5% rate. How many years would it take to the poor country to have the same GDP per capita of the rich country?



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