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To questions assigned in class: ==================================================================== Homework: Keynes speculated that there was at best a doubling of the world standard of living in the 4000 years that ended in 1700. What is the annual growth rate if it takes 4000 years for GDP per capita to double? From the rule of 70″: 70/g = 4000 So g = 70/4000 = .0175 percent per year ==================================================================== Homework: Using the numbers from the previous Table (Table 1.2 from Weils text) calculate Poorlands GDP in terms of Richland Dollars based on the PPP exchange rate. Does the ratio of GDP for these two countries make sense?
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