Consider two economies: Barylia and Lithasia.The GDP per capita in Lithasia is $6,000,while the GDP per capita in Barylia is $12,000.Both countries grow exponentially at an annual rate of 10 percent.How will their GDPs vary over the next year? Is there any limitation to comparing the absolute levels of GDP per capita of both countries over the next years? If yes,what is a plausible solution?

Question

Quizplus · Accepted Answer

The Answer of Consider two economies: Barylia and Lithasia.The GDP per capita in Lithasia is $6,000,while the GDP per capita in Barylia is $12,000.Both countries grow exponentially at an annual rate of 10 percent.How will their GDPs vary over the next year? Is there any limitation to comparing the absolute levels of GDP per capita of both countries over the next years? If yes,what is a plausible solution?

Consider Two Economies: Barylia and Lithasia