The economic growth model makes a prediction about an
economy’s initial level of real GDP per capita relative to
other economies and how fast the economy will grow in
the future.
Consider the statistics in the following table:
Are these statistics consistent with the economic growth
model? Briefly explain.
Now consider the statistics in the following table:
Are these statistics consistent with the economic growth
model? Briefly explain.
c. Construct a new table that lists all nine countries,
from the lowest real GDP per capita in 1960 to the
highest, along with their growth rates. Are the statistics
in your new table consistent with the economic
growth model?