Suppose That Real GDP Starts at 100 and Grows at a Rate

question 85

Multiple Choice

Suppose that real GDP starts at 100 and grows at a rate of 10 percent per year for two years. In the third year real GDP would be

• A) 110.
• B) 110.1.
• C) 120.
• D) 121.

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Definitions:

Secondary Succession

A new community becomes established in a site where a community previously existed.

Abandoned Field

Land that was previously cultivated but has been left unused for agricultural production.

Glacial Retreat

The process in which glaciers lose ice mass and shrink in size, often due to rising temperatures.

Volcanic Island

An island that forms from the accumulation of material ejected from an underwater volcano, rising above the sea surface.