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 July 15, 2018, 11:09 pm ad1c9bdddf
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
GDP after n years/Current GDP=2
Current GDP*(1.03)^n/Current GDP =2
Take natural log ...
Solution describes the steps to calculate the time needed to double the GDP and Per Capita GDP.