Suppose that South Korea is growing at 7% per year and is producing real GDP per capita of about $28,000, while Norway is growing at 3.5% per year and is producing real GDP per capita of $56,000. If all else stays equal, the real GDP per capita for these two countries will converge in:

Question

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The rule of 70 can be used to estimate the time it takes for one country's GDP per capita to catch up with another's. South Korea's GDP per capita is growing at a rate that is double Norway's, so it will take approximately 20 years for South Korea's GDP per capita to converge with Norway's.

Suppose That South Korea Is Growing at 7% Per Year