Suppose a Country's Potential Level of Real GDP Grows at a Rate

question 3

Multiple Choice

Suppose a country's potential level of real GDP grows at a rate of 6% per year. Use the rule of 72 to calculate how long it takes for the country's potential output to double.

• A) 6 years
• B) 12 years
• C) 24 years
• D) 30 years

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Definitions:

Discrete Probability Distribution

A statistical function that represents the probability of occurrence of each value of a discrete random variable.

Sample Space

The set of all possible outcomes or events in a statistical experiment.

Flipping Three Quarters

A probabilistic experiment involving tossing three quarters and analyzing the outcomes, typically related to studying probability distributions.

Probabilities

Measures the likelihood or chance of various outcomes in a set of circumstances or an experiment.