But the poorer country grows at 10 percent a year while the


Will the Poorer Country Catch Up? Suppose one country has a GDP that is one-eighth the GDP of its richer neighbor. But the poorer country grows at 10 percent a year, while the richer country grows at 2 percent a year. In 35 years, which country will have a higher GDP? (Hint: Use the rule of 70.) 8.1

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Econometrics: But the poorer country grows at 10 percent a year while the
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