Suppose that a country grows at an annual rate of G = 2%, imagine that at time "t" the country has an income level Yt. What will the income level of this country be in 10 years?" A. Y10 = Yt * 1.219 B. Y10 = Yt * 2,191 C. Y10 = Yt * 3.207 D. Y10 = Yt * 46.902

MACROECONOMICS
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Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
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i. Suppose that a country grows at an annual rate of G = 2%, imagine that at time "t" the country has an income level Yt. What will the income level of this country be in 10 years?"

A. Y10 = Yt * 1.219

B. Y10 = Yt * 2,191

C. Y10 = Yt * 3.207

D. Y10 = Yt * 46.902

 

ii. Spending on newly built housing is considered, within the expenditure method of computing GDP as:

A. Private consumption.

B. Public spending.

C. Investment.

D. It is not accounted for in National Accounts because only the year's production is taken into account

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