**Economic Growth and Income Projection Analysis***Scenario:*Suppose that average incomes today were $50,588 and are expected to grow at 2.6% each year for the next 87 years. The president is considering a policy which would increase the growth rate to 4.3%.**Question:**How much higher would the average income be in 87 years if this policy is enacted?*Instructions:*Round your final answer to two decimal places.**Graph/Diagram Explanation:**This problem does not include any graphs or diagrams, but it involves understanding the impact of different annual growth rates on future income projections over a specified time period. Using exponential growth formulas, students can compare the outcomes of two different growth scenarios to determine the prospective benefit of the policy change.

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Suppose that average incomes today were $50,588 and are expected to grow at 2.6% each year for the next 87 years. The president is considering a policy which would increase the growth rate to 4.3%. How much higher would the average income be in 87 years if this policy is enacted? Round your final answer to two decimal places.

Suppose that average incomes today were $50,588 and are expected to grow at 2.6% each year for the next 87 years. The president is considering a policy which would increase the growth rate to 4.3%. How much higher would the average income be in 87 years if this policy is enacted? Round your final answer to two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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