Refer to Table 25-1

Refer to Table 25-1.What is real GDP in this economy in Year 20 if the annual growth rate is 4%?
A) 2191
B) 8000
C) 20 800
D) 80 000
E) 836 683
Answer: A
Diff: 3
Topic: 25.1a.the nature of economic growth
Skill: Applied
Learning Obj.: 26-3 Explain how commercial banks create money through the process of taking deposits and making loans.
User1: Table
The diagram below shows alternate paths for two hypothetical economies,each starting with GDP of $1 billion.Assume that Area 1 is equal to Area 2. FIGURE 25-1
-Refer to Figure 25-1.Which of the following statements about Economies A and B is correct?

A) Economy A will sustain higher material living standards than Economy B in the long run.
B) Economies A and B will have equal material living standards beginning at Year 0.
C) Economy B will sustain higher material living standards than Economy A in the long run.
D) Economies A and B will have equal material living standards beginning at Year X.
E) Economies A and B will have equal material living standards beginning at Year Y.