(1) Suppose US real GDP increases at a constant rate of 3% each year.
a. After 10 years, how much will US real GDP have grown compared to its initial level?
b. How long will it take for the US to double its real GDP?
c. Suppose Japan’s real GDP is two-thirds of that of the US, but it instead increases at a constant rate of 4% each year. How long will it take for Japan’s real GDP to catch up to the US?