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    GDP and Per Capita GDP

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    If GDP is increasing by 3% per year how long will it take GDP to double? Given the same conditions how long will it take Per Capita GDP to double if the population grows at 2%?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:19 pm ad1c9bdddf
    https://brainmass.com/economics/economic-systems/gdp-and-per-capita-gdp-273213

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    Solution:

    Part 1
    If GDP is increasing by 3% per year how long will it take GDP to double?

    Let n be the period in years needed to double the GDP at 3% growth rate.
    GDP after n years=Current GDP*(1+3%)^n=current GDP*(1.03)^n
    Given
    GDP after n years/Current GDP=2
    Current GDP*(1.03)^n/Current GDP =2
    (1.03)^n=2
    Take natural log ...

    Solution Summary

    Solution describes the steps to calculate the time needed to double the GDP and Per Capita GDP.

    $2.19

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