ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    An economyтАЩs output in year 0 is 10 percent below its

    maximum potential output and the maximum potential output steadily increases at the rate of 5 per cent per annum after that. In such circumstances, for how many years would it be possible for that economy to maintain a 6 percent per annum rate of growth of actual output?┬а
    A Not possible at all Correct Answer Incorrect Answer
    B 5 years Correct Answer Incorrect Answer
    C 11 years Correct Answer Incorrect Answer
    D 15 years Correct Answer Incorrect Answer

    Solution

    Solution The economy would not be able to maintain 6% per annum rate of growth of actual output, because the rate of growth in potential output is below the rate of actual growth desired.

    Practice Next
    More Research Questions
    ask-question