Question

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 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? 

A Not possible at all
B 5 years
C 11 years
D 15 years
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