# Real Gdp

Basic Economics Assessment 2: Individual Assignment

1) Take year 2010 as a reference year, find out the GDP both real and nominal of China, USA and Singapore. Using the rule of 70, calculate and explain the years that China and Singapore would take to reach the per capita GDP of USA for year 2010.

The table below shows the Real and Nominal GDP figures and real GDP growth rates for USA, China & Singapore in 2009 & 2010:

|2009                                                                       |
|Country               |Real GDP (US\$ bn)         |Nominal GDP (US\$ bn)       |
|USA                   |13,939                     |13,939                     |
|China                 |5,069                     |5,069                     |
|Singapore             |183.3                     |183.3                     |

|2010                                                                       |
|Country               |Real GDP (US\$ bn)         |Nominal GDP (US\$ bn)       |
|USA                   |14,527                     |14,527                     |
|China                 |5,824                     |5,824                     |
|Singapore             |222.7                     |222.7                     |

Growth per capita of China
Years for China to double GDP/Capita:
Economic Growth Rate / year:
Present real GDP per capita – Previous real GDP per capita   x 100   =
Previous real GDP per capita

5,824 - 5,069 X 100 = 14.89% growth per year
5,069

Rule of 70:
70 / Growth Rate = 70 / 14.89
= 4.7 years per doubling period

Doubling-period – China

|Year                 |GDP per Capita (US\$ bn)         |
|2010                 |\$5,824                         |
|2014.7               |\$11,648                         |
|2015.6               |\$14,527                         |
|2019.4               |\$23,296                         |
|2024.1               |\$46,592                         |

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In accordance to the table and above by using the...