Consider the following table for a hypothetical economy in which the initial level of GDP Y0) in all cases is 1000. Assume that real GDP grows according to the equation Y01 + growth rate)N, where N is the number of years in the future. Numbers are rounded to the nearest whole number. TABLE 25-1
-Note: This question requires a calculator with an exponent function.
Refer to Table 25-1. If this economy is growing at an annual rate of 2%, then real GDP in Year 50 will be

Question

Consider the following table for a hypothetical economy in which the initial level of GDP Y0) in all cases is 1000. Assume that real GDP grows according to the equation Y01 + growth rate)N, where N is the number of years in the future. Numbers are rounded to the nearest whole number.  TABLE 25-1
-Note: This question requires a calculator with an exponent function.
Refer to Table 25-1. If this economy is growing at an annual rate of 2%, then real GDP in Year 50 will be

Quizplus · Accepted Answer

To calculate the real GDP in Year 50, we use the formula Y01 + growth rate)^N. 
Therefore, Y50 = (1000 * 1.02)^50 = 2691.73, which rounds to 2692. Therefore, the best choice is C.

Consider the Following Table for a Hypothetical Economy in Which