Calculate the percentage change in real GDP in each of the years shown. 2.Then once you've calculated the percentage change for each of the years, use the orange points (square symbol) to plot your results on the following graph, rounded to the nearest percent. For each year, plot the percentage change from the year before.
Calculate the percentage change in real GDP in each of the years shown. 2.Then once you've calculated the percentage change for each of the years, use the orange points (square symbol) to plot your results on the following graph, rounded to the nearest percent. For each year, plot the percentage change from the year before.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Calculate the percentage change in real GDP in each of the years shown.
2.Then once you've calculated the percentage change for each of the years, use the orange points (square symbol) to plot your results on the following graph, rounded to the nearest percent. For each year, plot the percentage change from the year before.
Transcribed Image Text:### 2. Economic Fluctuations and Growth
The following table shows data on a hypothetical country's real GDP from 1970 through 1978:
| Year | Real GDP (Billions of Dollars) |
|------|-------------------------------|
| 1970 | 186 |
| 1971 | 190 |
| 1972 | 192 |
| 1973 | 202 |
| 1974 | 200 |
| 1975 | 194 |
| 1976 | 196 |
| 1977 | 200 |
| 1978 | 202 |
### Analysis:
- The GDP shows an overall increasing trend with some fluctuations.
- Between 1970 and 1973, the GDP increased consistently.
- There is a slight decrease in 1974.
- The year 1975 experienced a more significant drop in GDP.
- From 1976 onwards, there is a recovery with the GDP gradually increasing back to 202 billion dollars by 1978.
This data can be used to study economic cycles and the impact of potential factors causing GDP fluctuations.
Transcribed Image Text:### Annual Change in Real GDP (Percent) from 1971 to 1978
#### Graph Explanation:
**Title: Annual Change in Real GDP**
**X-Axis:**
- Labeled "YEAR."
- Range: 1971 to 1978.
- It increments by one year.
**Y-Axis:**
- Labeled "ANNUAL CHANGE IN REAL GDP (Percent)."
- Range: -5 to 5 percent.
- Each major division represents a 1 percent change.
The horizontal line across the graph at the 0% mark indicates no change in real GDP on an annual basis from 1971 to 1978. This absence of fluctuation suggests either stable growth or a lack of data variation for this period.
#### Legend:
- Presented on the right side of the graph with the label "Annual Change."
- The legend includes a small, solid orange square symbol with smaller orange lines extending from both sides, signifying the representation of annual change data points on the graph.
This graph provides a visual representation to help students understand the annual percentage change in real GDP over the given years, illustrating economic stability or consistency during this period.
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