11. Assume that for a country KROW, its inflation is expected to growth by 4%, its population is expected to grow by 2% and labor force participation is expected to grow by 0.25%. The government budget deficit will grow by 4%. If the spending on new capital inputs is projected to grow at 2.5% and total productivity will grow by 0.5%, what is the projected economic growth rate? a. 9.25% b. 5% c. 5.25% d. 13.25% .

1. 11. Assume that for a country KROW, its inflation is expected to growth by 4%, its population is
expected to grow by 2% and labor force participation is expected to grow by 0.25%. The
government budget deficit will grow by 4%. If the spending on new capital inputs is projected to
grow at 2.5% and total productivity will grow by 0.5%, what is the projected economic growth
rate? a. 9.25% b. 5% c. 5.25% d. 13.25%