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. ### 2. Economic Fluctuations and GrowthThe 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. ### 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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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.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 7PA

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The following graph approximates business cycles in the United States from the first quarter of 1947 to the third quarter of 1951. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDP). 1947194819491950195121702070197018701770REAL GDP (Billions of dollars)YEAR Source: “Current-dollar and Real GDP,” Bureau of Economics Analysis, last modified May 1, 13, accessed May 15, 13, http://www.bea.gov/national/xls/gdplev.xls. Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1948, is known as . True or False: Small ups and downs in real GDP follow a consistent, predictable pattern. True False Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1950? Check all that apply. Industrial production declined. Consumer spending increased.…
macroeconomics - gdp
Review View Design Layout References Mailings Page Layout Assignment Questions: 1. Calculate the GDP by using both formulas, expenditure approach and income approach. Also calculate the Real GDP if CP1 for Year1 is 120 and CPI for Year 2 is 150 Million $ YEAR 1 Consumption Indirect Taxes 6,200 200 1,600 800 Investment Depreciation Interest 400 500 500 Corporate Profit Exports Compensation of Employees Government Purchases 6,300 1,000 800 Direct Taxes 1,100 700 Saving Imports Rent 400 Million $ YEAR 2 Government Purchases 2500 Wages 4000 Interest 500 Proprietor's Income Consumption Depreciation Investment 2000 3000 200 1500 Indirect Taxes 300 700 Savings Imports 9000 dow Rent 1000 Еxports 10000 Hail English (U.S.)
The following graph approximates business cycles in the United States from the first quarter of 1953 to the third quarter of 1957. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDP). (? 2700 2600 2500 2400 2300 1953 1954 1955 1956 1957 YEAR Source: "Current-dollar and Real GDP," Bureau of Economics Analysis, last modified May 1, 13, accessed May 15, 13, http://www.bea.gov/national/xls/gdplev.xls. Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in real GDP are often referred to as True or False: Small ups and downs in real GDP follow a consistent, predictable pattern. O True O False Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1954? Check all that apply. O Car sales declined. O The unemployment rate declined. O Corporate profits increased. O Consumer spending declined. REAL GDP (Billions of dollars)
Question 2 (Mandatory) (1 point) * Nominal GDP -Real GDP 1000 800 600 400 200 1990 1995 2000 2005 2010 Years FIGURE 20-1 Refer to Figure 20-1. Which of the following years was used as the base year for constructing real GDP? 1995 2000 2003 2005 O 2010 Nominal and Real GDP (billions of dollars)
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The following table shows data on a hypothetical country's Real GDP from 1970 through 1978: Real GDP Year (Billions of Dollars) 1970 465 1971 470 1972 475 1973 485 1974 510 1975 505 1976 495 1977 490 1978 500 The green line on the following graph shows the economy's long-term growth trend. Lise the blue points (circle symbol) to plot the Real GDP in each of the years listed. (Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) Next, place the black point (plus symbol) on the graph to indicate the point on the Real GDP curve that delinitely represents a peak. Finally, place the grey point (star symbol) on the graph to indicate the point on the Real GDP curve that delinitely represents a trough. 550 540 Real GDP 530 520 510 Peak 500 490 Traugh Growth trend 480 470 460 450 1970 1971 1972 1973 1974 1975 1978 1977 1978 YEAR Calculate the percentage change in Real GDP in each of the years shown. (Hint: The…
Transcribed Image Text:The price and quantity data for Year 1 and Year 2 are as follows: Bread 50 1 Butter 100 Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price 80 120 1.60 1.25 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year? Answer Choices: 1.254 b. 1.354 1.434 d. 1.534 a. C. Acivate Windcys
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