Two economies a and b start out with real gdp equal to 1000


Two economies, A and B, start out with real GDP equal to $1,000. If country A grows at a rate of 5% while country B grows at a rate of 10%, calculate the following:

a) Country A's level of real GDP after 3 years.

b) Country B's level of real GDP after 3 years.

c) The difference in the two countries GDP after 3 years.

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Two economies a and b start out with real gdp equal to 1000
Reference No:- TGS01392115

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)