Question

Real per capita GDP in South Korea in 1957 was about $400, but it doubled to about $800.00 by 1978. a. What was the average annual economic growth rate in South Korea over the 21.00 years from 1957 to 1978? (NOTE: Round this to two places past the decimal point.

Answer 1

Answer:

3.33%

Explanation:

Data provided in the question:

Real per capita GDP in South Korea in 1957 = $400

per capita GDP in South Korea in 1978 = $800

Total number of years taken to double the GDP = 21 years

Now,

Using the Rule of 70, which states that

Number of years to double the GDP = 70 ÷ (average annual economic growth rate )

thus,

21 years = 70 ÷ average annual economic growth rate

or

Average annual economic growth rate = 3.33%