Can anyone please explain the answer to this economics question?

Question

Indias population growth rate is 1.6% a year.In 2005 its economic growth rate was 8% a year. Chinas population growth rate is 0.6% a year.In 2005 its economic growth rate was 9% a year. Using 2005 as a starting point, real GDP per person will double during _ in India and during _ in China.

Answer 1

Jessica,

 

By my calculations, India's real GDP per person will double in 12 years.  China's in 9 years. 

 

Start with a base value for GDP and Population.  You don't actually need the base values to be accurate since you are deriving the answer from the rates of growth but if you want look up the actual values for 2005.

 

Then calculate estimated values based on the rates of growth for each subsequent year.  Finally for each subsequent year calculate the GDP per person.  Once you have that for each year you can figure out how many years it takes for the GDP per person to double.

 

Hope this helps.