Imagine a country where Real GDP per person was equal to $650 in 1870 and it grew at an annual rate of 6%. (a) What is the value of this country's real GDP after 12 years? (b) What is the value of this country's GDP after 24 years?

Imagine a country where Real GDP per person was equal to $650 in 1870 and it grew at an annual rate of 6%. (a) What is the value of this country's real GDP after 12 years? (b) What is the value of this country's GDP after 24 years?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 2P

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Question

For full credit you must clearly label your answers to part (a) and (b) of this question. You only have to give the value of real GDP for each part - no explanation is required. Your answer should look like the following (where "XXXX" is the value of real GDP after 12 years and "YYYY" is the value of real GDP after 24 years.

(a) $XXXX

(b) $YYYY

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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