A Quantity Increases by 7% Each Month for 11 Months

question 16

Multiple Choice

A quantity increases by 7% each month for 11 months.What is the total percentage increase over the 11-month period? Round your answer to two decimal places if necessary. ​

• A) 76.41%
• B) 110.86%
• C) 110.49%
• D) 77%

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Definitions:

Price Level

An assessment of the standard prices of goods and services in an economy at a particular moment.

Real GDP

The total value of all goods and services produced by a country, adjusted for inflation or deflation.

Expansionary Gap

A situation in macroeconomics when aggregate output is above potential output, often leading to inflationary pressures.

Recessionary Gap

Describes a situation where the real GDP of an economy is less than its potential GDP, indicating underutilized resources and a sluggish economy.