Assume there are two countries: south korea and the united states. south korea grows at 4% and the united states grows at 1%. for the sake of simplicity, assume they both start from the same fictional income level, $10,000. what will the incomes of the united states and south korea be in 20 years? by how many multiples will each country’s income grow in 20 years?

The US income will be $12,201 and South Korea's income will be $21,911. US income will grow by multiple of 1.2 while South Korea's GDP will grow by multiples of 2.19.

Explanation:

Initial income of both the countries is $10,000.

Growth rate of South Korea is 4%.

Growth rate of US is 1%.

In 20 years, South Korea's income will be,

=Initial income*

=$10,000*

=$10,000*2.1911

=$21,911

Similarly, we can find US income.

=Initial income*

=$10,000*

=$10,000*1.2201

=$12,201

So, South Korea's income is $21,911 while US's income is $12,201.

South Korea's income grows by the multiples of 2.1911. While, US's income grows by the multiples of 1.2201

answer; situational irony;