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Mathematics, 14.09.2021 14:00, Mw3spartan17
1. This is actual data for the US. We are going to do a thought experiment by using historical
data to give a guess about what the future could be like (in reality, we donβt know what the
future looks like).
In 2002 β the year you were approximately born β real GDP per capita in the US was $46,388
(2012 dollars). In 2021, real GDP per capita is $58,454.
(a) What was the annual growth rate of real GDP per capita from 2002 to 2021?
(b) Suppose when you graduate, you get a good job and your income is equal to GDP per
capita. Also suppose your income grows at exactly the same rate as the growth rate
in GDP per capita each year that you work. Additionally, suppose the real GDP per
capita growth rate remains the same as it did from 2002-2021 throughout your working
life. I expect you will work 45 years from now and retire in the year 2065.
Given our scenario, how much will your income be when you retire in 2065?
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Answers: 3
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1. This is actual data for the US. We are going to do a thought experiment by using historical
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