Exploring Feedback and Growth

1.  The destabililizing and stabilizing forces mentioned in the text are examples of feedback. Feedback is discussed in here:
http://ingrimayne.com/econ/AllocatingRationing/PriceAndFeedback.html

There are problem sets about feedback here:
http://ingrimayne.com/econ/AllocatingRationing/feedback.htm
and here:
http://ingrimayne.com/econ/Cycles/feedbak2.htm

2. Suppose two countries start with per capita income of $1000. One country is able to grow at 3% annually while the other grows at 3.3% annually. How much difference will that slightly greater growth rate make in 100 years? In 200 years? You can find out by using the  compound interest rate calculator at:
http://www.moneychimp.com/calculator/compound_interest_calculator.htm
What did you find?

3. People who deal with growth rates often talk about the "Rule of 70" or the "Rule of 72." Search the Internet to discover what these rules are. Which is more accurate? Can you use them to get a rough estimate of the answers in the previous question?

 

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