Consider the Following Table for a Hypothetical Economy in Which

question 116

Multiple Choice

Consider the following table for a hypothetical economy in which the initial level of GDP ( ) in all cases is 1000.Assume that real GDP grows according to the equation ,where N is the number of years in the future.Numbers are rounded to the nearest whole number. Real GDP with Alternative Growth Rates TABLE 25-1
Note: This question requires a calculator with an exponent function.
Refer to Table 25-1.What is real GDP in this economy in Year 20 if the annual growth rate is 4%?

• A)2191
• B)8000
• C)20 800
• D)80 000
• E)836 683

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