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 4%, 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 4%, then real GDP in Year 50 will be

Quizplus · Accepted Answer

Using the formula given in the question, we can calculate the real GDP for Year 50 as follows:
Y50 = Y0(1 + growth rate)^N
Y50 = 1000(1 + 0.04)^50
Y50 = 7107 (rounded to the nearest whole number)
Therefore, the real GDP in Year 50 will be 7107. The correct answer is D.

Consider the Following Table for a Hypothetical Economy in Which