Two countries start with equal GDPs. The economy of Country A grows at an annual rate of

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Two countries start with equal GDPs. The economy of Country A grows at an annual rate of 3 percent while the economy of Country B grows at an annual rate of 4 percent. After 25 years, how much larger is Country B’s economy than Country A’s economy? Why is the answer
Not 25 percent?

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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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