Question: Assume That A Leader Country Has Real GDP Per Capita Of $40,000, Whereas A Follower Country Has Real GDP Per Capita Of $20,000. Next Suppose That The Growth Of Real GDP Per Capita Falls To Zero Percent In The Leader Country And Rises To 2 Percent In The Follower Country. If These Rates Continue For Long Periods Of Time, How Many Years Will It Take For …
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Assume that a leader country has real GDP per capita of $40,000, whereas a follower country has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 2 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country? Instructions: Enter your answer as a whole number. years There is such a close relationship between changes in a nation’s rate of productivity growth and changes in its average real hourly wage because if the average real hourly wage and output per worker is O increasing, then the amount of output available per capita for workers to buy will be less so more can be purchased. decreasing, then the amount of output available per capita for workers to buy will be less so more can be purchased. decreasing, then the amount of output available per capita for workers to buy will be decreasing so more can be purchased. O increasing, then the amount of output available per capita for workers to buy will be growing so more can be purchased.
