Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year. After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars?

A. B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis.
B. B is 8 times larger, or $175,000 larger on a real per capita basis.
C. B is 12 times larger, or $230,000 larger on a real per capita basis.
D. B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis.


Answer: D

Economics

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