Small differences in growth rates in the size of the economy, over several decades, will result in big differences in the size of the economy. Pretend we start in 1950 and the U.S. growth in real GDP has been around 3.15%. This has resulted in real GDP growing 8 times over this 70-year period (1950 to 2020). If real GDP growth had been 4.0%, real GDP would be times larger. a. 8 (about the same growth as with 3.15% growth) b. 10 C. 14 d. 16
Small differences in growth rates in the size of the economy, over several decades, will result in big differences in the size of the economy. Pretend we start in 1950 and the U.S. growth in real GDP has been around 3.15%. This has resulted in real GDP growing 8 times over this 70-year period (1950 to 2020). If real GDP growth had been 4.0%, real GDP would be times larger. a. 8 (about the same growth as with 3.15% growth) b. 10 C. 14 d. 16
Chapter5: National Income Accounting
Section: Chapter Questions
Problem 3E
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Transcribed Image Text:Small differences in growth rates in the size of
the economy, over several decades, will result
in big differences in the size of the economy.
Pretend we start in 1950 and the U.S. growth in
real GDP has been around 3.15%. This has
resulted in real GDP growing 8 times over this
70-year period (1950 to 2020). If real GDP
growth had been 4.0%, real GDP would be
times larger.
a. 8 (about the same growth as with 3.15%
growth)
b. 10
С. 14
d. 16
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