If the economy grows at 10 percent from year 1 to year 2 and real GDP is 300 in year 1, what will real GDP be in year 2?
A) 10
B) 300
C) 315
D) 330

Name: If the economy grows at 10 percent from year 1 to year 2 and real GDP is 300 in year 1, what will real GDP be in year 2? A) 10 B) 300 C) 315 D) 330
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Question

Quizplus · Accepted Answer

To find the real GDP in year 2 after a 10 percent growth, you multiply the year 1 GDP by 1.10 (to account for the 10% growth): 300 * 1.10 = 330.

If the Economy Grows at 10 Percent from Year 1