Macroeconomics – 5 important facts to note

Macroeconomics

Apply the rule of 70 to solve the following problem.

Real GDP per person in Mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the United States.

If real GDP per person in Mexico grows at the rate of 2 percent per year, how long will it take Mexico’s real GDP per person to reach the level that the United States was at in 2005?

(Hint: How many times would Mexico’s 2005 real GDP per person have to double to reach the United States’ 2005 real GDP per person?)

macroeconomics

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