Answered: 2. Economic growth Suppose yo = 100 and…

2. Economic growth Suppose yo = 100 and assume that k grows at a constant rate of g = 2 percent per year. If y, = k," what is the approximate value of y in 50 years?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter16: Creating An Environment For Growth And Prosperity

Section: Chapter Questions

Problem 1CQ

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2. Economic growth
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Suppose yo = 100 and assume that k grows at a constant rate of g = 2 percent per year. If y, = k,
what is the approximate value of y in 50 years?

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