If output per capita grows by a constant 6% per year,then the standard of living would grow by about ________ over 3 years.
A)12%
B)17%
C)18%
D)19%
E) 20%

Name: If output per capita grows by a constant 6% per year,then the standard of living would grow by about ________ over 3 years. A)12% B)17% C)18% D)19% E) 20%
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Question

Quizplus · Accepted Answer

The standard of living grows by approximately 19% over 3 years when compounded annually at a 6% growth rate: (1.06)^3 - 1 ≈ 0.191 or 19.1%.

If Output Per Capita Grows by a Constant 6% Per