Calculate per capita spending in 2010 and 2020, respectively, using constant dollars.  *Results round to the nearest dollar.    2010 per capita spending:     2020 per capita spending:       2. Calculate the compound annual growth rate of per capita spending from 2010 to 2020              3. Calculate spending-to-GDP ratios in 2010 and 2020, respectively.  *Results round to the nearest 2 decimal places.  2010 spending-to-GDP ratio:     2020 spending-to-GDP ratio:     Interpret what the two spending-to-GDP ratios tell us about City A’s spending trend.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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  1. The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions.

               

 

2010

2020

Total spending ($ million)

89

104.12

Local GDP ($ millions)

110

134

Population

50,000

56,275

CPI deflators (2012=1)

0.96

1.05

  1. Calculate per capita spending in 2010 and 2020, respectively, using constant dollars

*Results round to the nearest dollar. 

 

2010 per capita spending:

 

 

2020 per capita spending:

 

 

 

2. Calculate the compound annual growth rate of per capita spending from 2010 to 2020 

 

 

 

 

 

 

3. Calculate spending-to-GDP ratios in 2010 and 2020, respectively. 

*Results round to the nearest 2 decimal places. 

2010 spending-to-GDP ratio:

 

 

2020 spending-to-GDP ratio:

 

 

  1. Interpret what the two spending-to-GDP ratios tell us about City A’s spending trend. 

 

 

 

4. Assuming City A’s population grows at a constant rate in the next decade. Based on the information in the table, estimate City A’s population in 2030. 

*Final results round to the nearest integer.

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