Question

A country aims to double real GDP per capita in the next 25 years. If the rate of population growth in the country is 0.8% per year then at approximately what rate does real GDP need to grow to achieve this goal?

Answer 1

the growth rate is 3.6%

Step-by-step explanation:

The computation is the growth rate is shown below:

Number of year to double the GDP = 70 ÷ annual growth percentage

25 = 70 ÷ annual growth percentage

So,

Annual growth percentage is

= 70 ÷ 25

= 2.8 percent

And, the population growth rate is 0.8%

So, the real GDP is

= 2.8% + 0.8%

= 3.6%

Hence, the growth rate is 3.6%