If our economy is growing at a constant rate of 5 percent per year,then over a period of 10 years we would expect to see which of the following?
A)Nice,steady flat line growth
B)An upward-sloping growth line
C)A downward-sloping growth line
D)It is impossible to say what kind of growth line we would see

Question

Quizplus · Accepted Answer

If the economy is growing at a constant rate of 5 percent per year, we would expect to see an upward-sloping growth line over a period of 10 years. This is because the growth rate compounds over time, leading to an increasing growth rate each year. This would result in a steady increase in the size of the economy over the 10-year period.

If Our Economy Is Growing at a Constant Rate of 5