00:01
Hey guys and welcome to another economics example where we're going to be talking some more about economic growth.
00:07
So for this example, we're just going to be doing another example trying to calculate gdp growth using the gdp growth formula.
00:17
So for this example, we have an initial gdp, which is going to remain constant for each of the four examples here of $5 ,000, say dollars.
00:30
So then for a, we're going to be trying to calculate what the gdp would be after 20 years at a growth rate of 2%.
00:37
For b, 40 years at also a growth rate of 2%.
00:40
C, 40 years at a growth rate of 4%.
00:43
And then d, 40 years at a growth rate of 6%.
00:46
So before i get into what the answers are here, the formula you're going to want to be using is the one that we've used already.
00:57
So you got your initial gdp, and then you multiply that by one plus your growth rate, and then you take it to the power of however many years you're dealing with, and then that gives you the answer that you want.
01:13
So that gives you what your gdp will be after that many years with a growth rate of whatever you entered...