An economy’s output in year 0 is 10 percent below its maximum potential output and the maximum potential output steadily increases at the rate of 5 percent 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?
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Quantitative aptitude and data reasoning has come up 92 times in 6 exams since 2008.
This question is on Interest, growth rates and compounding, part of Quantitative aptitude and data reasoning in Mathematics.
Simple and compound interest and the growth-rate measures used for economies.
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Question from the JNU SSS 2015 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.