Figure 3.7: Evolution of GDP per Capita Relative to the US (US = 100) at Purchasing Power Parity (2009–2023)
This chart, covering the period from 2009 to 2023, presents a comparative analysis of living standards by showing the GDP per capita of various countries relative to the United States. The data is adjusted for purchasing power parity (PPP), and the U.S. is set as the benchmark at an index of 100 for each year.
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History’s Hockey Stick: Stagnant Income Before Sustained Growth
Capitalism, Causation, and History’s Hockey Stick
India's Progress in Living Standards and Persistent Poverty (14th Century to Present)
Living Standards Visualization: Pre-1800 Limitations
Intra-Country vs. Inter-Country Inequality in the 14th-17th Centuries
Purchasing Power Parity (PPP)
Latin American Growth
Figure 1.1: The History's Hockey Stick Graph of GDP Per Capita
China's Economic Decline
Modern Global Wealth Hierarchy (2018): Comparisons of Japan, India, Britain, US, and Norway
Britain's Early and Gradual 'Hockey Stick' Kink
Japan's Sharp 'Hockey Stick' Kink around 1870
Pre-1800 GDP Data Scarcity and Its Impact on Historical Graphs
Data Sources for the History's Hockey Stick Graph
Understanding and Interpreting Ratio Scale Graphs
An economist plots the GDP per capita of two countries, Country X and Country Y, from 2000 to 2020 on a graph with a ratio scale on the vertical axis. In 2000, Country X had a much higher GDP per capita than Country Y. However, over the 20-year period, Country Y experienced a significantly faster average annual growth rate than Country X. Based on this information, which statement best describes how the two lines would appear on the graph?
Choosing the Right Economic Visualization
Consider two countries, Country A and Country B. In a given year, Country A's income per person is $40,000 and it increases by $2,000 the following year. In the same period, Country B's income per person is $10,000 and it increases by $1,000. Which of the following statements provides the most accurate economic comparison?
An economic historian is studying two countries, Alpha and Beta, over a 50-year period. She plots their income per person on a graph where the vertical axis uses a ratio scale. The line for Country Alpha starts at a much higher point on the axis than the line for Country Beta. Over the 50 years, the line for Alpha is nearly flat, while the line for Beta is a steep, upward-sloping straight line. What is the most accurate conclusion the historian can draw from this graph?
Evaluating an Economic Analysis
When examining a graph that plots a country's income per person over several decades using a ratio scale on the vertical axis, a straight, upward-sloping line signifies that the absolute (e.g., dollar amount) increase in income per person was constant year after year.
Evaluating an Investment Recommendation
Interpreting Economic Performance
An economic analyst is comparing two countries, Country A and Country B. In 1990, Country A's income per person was ten times that of Country B. Over the subsequent 30 years, Country A's income per person grew at an average rate of 1% per year, while Country B's grew at an average rate of 7% per year. Which of the following statements provides the most accurate analysis of their relative economic situations after this 30-year period?
An economic historian is comparing the long-term development of two nations, Country A and Country B, by plotting their income per person on a graph with a ratio scale on the vertical axis. Historical data reveals the following:
- Country A had a relatively high income per person 300 years ago and has experienced a slow but consistent proportional increase in income ever since.
- Country B had a very low income per person 300 years ago, which remained stagnant for the first 250 years, but has grown at an extremely rapid proportional rate over the last 50 years.
Which of the following statements best describes how the plots for these two countries would appear on the graph?
Delayed Economic Growth in China and India Until Post-Colonial Independence
Catch-Up Growth of 'Latecomer' Economies: India and China
Figure 3.7: Evolution of GDP per Capita Relative to the US (US = 100) at Purchasing Power Parity (2009–2023)
Learn After
Effect of Data Frequency on Trend Line Smoothness in Economic Charts
China's Atypical Economic Path During the COVID-19 Era
Consider a line chart that displays the Gross Domestic Product (GDP) per capita for two countries, Country X and Country Y, from 2009 to 2023. The data is presented as an index where the GDP per capita of the United States is set to 100 for each year, serving as a benchmark. On this chart, Country X's line begins at an index value of 85 in 2009 and gradually declines to 80 by 2023. Country Y's line begins at an index value of 25 in 2009 and steadily rises to 40 by 2023. Based solely on this information, which of the following statements provides the most accurate analysis of the economic trends?
On a line chart showing various countries' GDP per capita as a percentage of the U.S. GDP per capita (where U.S. = 100 for each year), a country's line trends downward from 95 to 90 over a five-year period. This downward trend necessarily indicates that the country's own absolute GDP per capita has decreased during that time.
Interpreting Relative Economic Growth Data
Analyzing Economic Convergence and Divergence
An economist is analyzing a chart that shows the GDP per capita of several countries from 2010 to 2020, indexed to the United States' GDP per capita (U.S. = 100 for each year). Match each described trend on the chart to its most accurate economic interpretation.
Evaluating Relative Economic Performance Metrics
A line chart displays the GDP per capita of Country Z indexed to that of the United States, where the U.S. value is set to 100 for each year. In a particular year, the absolute GDP per capita of the United States grew by 4%. During that same year, the line representing Country Z on the chart remained perfectly horizontal. This means that Country Z's own absolute GDP per capita must have grown by ____%.
An economic analyst is studying a chart that shows the GDP per capita of four different countries (A, B, C, and D) from 2010 to 2020. The data is indexed, with the GDP per capita of a benchmark country set to 100 for each year. Based on the starting and ending index values provided below, arrange the countries in order from the one that showed the most positive change in its economic performance relative to the benchmark country to the one that showed the most negative change.
Critique of an Economic Interpretation
Devising a Strategy for Economic Convergence
Data Smoothing in China's GDP Series (Figure 3.7)
China's Atypical Economic Performance During the COVID-19 Period
China's Economic Convergence with High-Income Countries
Divergence of GDP Per Capita Between the US and European Economies