Plot the following scenarios for per capita GDP on a ratio scale.
1 answer:
Answer:
Answer is explained in the explanation section.
Explanation:
As given, we have to use the 70's rule, which states that, size of the variable will be doubled every 70/x years, if the the yearly growth rate of that variable is x%.
And we are given that,
The Per Capita GDP for year 2015 = $10,000
a) Graphs of the Per Capita GDP are attached in the attachment 1.
So, by using the rule of 70. we have
x = 5% growth rate.
between the years 2015 and 2085.
So, the size of the variable will be doubled every 70/x years, if the yearly growth rate is 5%.
So,
Years = 70/x
Years = 70/5
Years = 14.
It means, per capita GDP will be doubled every 14 years time period.
b) Graphs of the Per Capita GDP are attached in the attachment 2.
Growth rate = 2%
Between the years 2015 and 2085. then
Growth rate = 7%
For = After 2085 years for 20 years, then
Growth rate = 5%
For = next 28 years.
So,
Years = 70/x
Years = 70/2
Years = 35 years.
It means, per capita GDP will be doubled every 35 years time period.
Now, it speeds up to 7% per year for the next 20 years.
Year = 70/x
Years = 70/7
Years = 10 years
It means, it speeds up to 7% per year for the next 20 years. per capita GDP will be doubled every 10 years time period.
Now, if it slows down to 5% per year for the next 85 years then,
years = 70//x
years = 70/5
years = 14 years
It means, if it slows down to 5% per year for the next 85 years then, per capita GDP will be doubled every 14 years time period.
c) Graphs of the Per Capita GDP are attached in the attachment 3.
Growth rate = 7% per year
For = 50 years and then
Grow rate = 1%
For = next 140 years.
Years = 70/x
Years = 70/7
Years = 10 years
It means, Per capita GDP will be doubled after every 10 years for 50 years.
Now, if it slows down to 1% per year for the next 140 years then,
Years = 70/x
Years = 70/1
Years = 70 years
It means, for next 140 years per capita GDP will be double after every 70 years.
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