Suppose that in 1955 Japan had an initial per capita GDP of $15,000 per year and China had a per capita GDP of $2,500. But China is growing at 7 percent per year and Japan is growing at 2 percent per year. In 2015, ________ would have been the lower-income country, with a per capita GDP of approximately ________.
A) China; $2,500
B) Japan; $15,000
C) China; $50,000
D) Japan; $46,000
E) Japan; $105,000

Question

Quizplus · Accepted Answer

China's per capita GDP in 2015 would have been $50,000, while Japan's would have been $46,000.

Suppose That in 1955 Japan Had an Initial Per Capita