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 feature.
Refer to Table 25-1.What is real GDP in this economy in Year 20 if the annual growth rate is 1%?

Question

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 feature.
Refer to Table 25-1.What is real GDP in this economy in Year 20 if the annual growth rate is 1%?

Quizplus · Accepted Answer

Using the provided equation for real GDP growth, we can calculate the real GDP for Year 20 with a growth rate of 1% as follows:
Real GDP = (1000)(1 + 0.01)^20 = 1220. Therefore, the correct answer is choice C.

Consider the Following Table for a Hypothetical Economy in Which