Gross Domestic Product (GDP) is one important indicator of economic well-being of an economy. The following table shows expenditure components in the GDP of a certain economy across three years (in billion dollars, 2018 chained values): 2017 2018 2019 Private Consumptions 1000 1100 1200 Private Investments 500 520 540 Government Spending 100 150 180 Exports 8500 9000 8600 Imports 8300 8800 8500 a. Compute the annual economic growth rates over the period. Describe how the economy changed over time. b. Briefly explain the changing sources of growth during the period. Briefly comment on such changes. Adopt relevant calculations as appropriate. c. Briefly explain TWO limitations of relying on the above figures to indicate the economic well-being of the households in the economy
of an economy. The following table shows expenditure components in the GDP of
a certain economy across three years (in billion dollars, 2018 chained values):
| 2017 | 2018 | 2019 | |
| Private Consumptions | 1000 | 1100 | 1200 |
| Private Investments | 500 | 520 | 540 |
| Government Spending | 100 | 150 | 180 |
| Exports | 8500 | 9000 | 8600 |
| Imports | 8300 | 8800 | 8500 |
a. Compute the annual
economy changed over time.
b. Briefly explain the changing sources of growth during the period. Briefly
comment on such changes. Adopt relevant calculations as appropriate.
c. Briefly explain TWO limitations of relying on the above figures to indicate the
economic well-being of the households in the economy
.d. Refer to your answers in (c), suggest TWO additional
to accompany with the given figures in representing the changing economic
well-being. Briefly explain your choices.
Step by step
Solved in 4 steps with 3 images
