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In: Economics

Suppose an economy has a GDP=8.78 and grows at 1.28% on average. what would the size...

Suppose an economy has a GDP=8.78 and grows at 1.28% on average. what would the size of the economy be after 2 years assuming the average growth rate occurs in every year?

Solutions

Expert Solution

Given,

GDP=8.78

Growth rate=1.28%

We can calculate the size of the economy after 2 years as follows:

So, the size of the economy after 2 years assuming the average growth rate occurs in every year will be 9.01.

Rahul Sunny answered 2 years ago
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