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Suppose an Economy's Real GDP Is $100,000 in Year 1

question 14

Essay

Suppose an economy's real GDP is $100,000 in year 1 and $110,000 in year 2.What is the growth rate of its GDP? Assume that population was 200 in year 1 and 205 in year 2.What is the growth rate in GDP per capita?


Definitions:

Historical Cost

An accounting principle requiring assets to be recorded at their original purchase price, without adjusting for increases or decreases in value.

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