In this section we looked at the growth rate formula for measuring the average annual growth rate of a variable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may be years apart. For example, in the worksheet you computed the average annual rate of inflation from 1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the same value as you do with the percentage change formula? Hint: Say that real GDP grew from $20.0 trillion one year to $20.4 trillion the next year. Do both the percentage change and the growth rate formulas give you the same answer? yes no
In this section we looked at the growth rate formula for measuring the average annual growth rate of a variable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may be years apart. For example, in the worksheet you computed the average annual rate of inflation from 1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the same value as you do with the percentage change formula? Hint: Say that real GDP grew from $20.0 trillion one year to $20.4 trillion the next year. Do both the percentage change and the growth rate formulas give you the same answer? yes no
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Production And Growth
Section: Chapter Questions
Problem 3CQQ
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Question
Answer both questions please
![In this section we looked at the growth rate formula for measuring the average annual growth rate of a
variable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may be
years apart. For example, in the worksheet you computed the average annual rate of inflation from
1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the same
value as you do with the percentage change formula?
Hint: Say that real GDP grew from $20.0 trillion one year to $20.4 trillion the next year. Do both the
percentage change and the growth rate formulas give you the same answer?
yes
no](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe33f6f15-80e8-4ee2-aea3-bbb716d41fc4%2F11f428ca-caa6-47cb-b6a1-8283428946a2%2Fogtdrsh_processed.png&w=3840&q=75)
Transcribed Image Text:In this section we looked at the growth rate formula for measuring the average annual growth rate of a
variable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may be
years apart. For example, in the worksheet you computed the average annual rate of inflation from
1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the same
value as you do with the percentage change formula?
Hint: Say that real GDP grew from $20.0 trillion one year to $20.4 trillion the next year. Do both the
percentage change and the growth rate formulas give you the same answer?
yes
no
![Say that you have values for real GDP that are 10 years apart (for example for 2009 and 2019). If you
used the percent change formula on these values, the number you calculate would be the average
annual growth rate over these 10 years.
true
O false](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe33f6f15-80e8-4ee2-aea3-bbb716d41fc4%2F11f428ca-caa6-47cb-b6a1-8283428946a2%2Fvbny4fc_processed.png&w=3840&q=75)
Transcribed Image Text:Say that you have values for real GDP that are 10 years apart (for example for 2009 and 2019). If you
used the percent change formula on these values, the number you calculate would be the average
annual growth rate over these 10 years.
true
O false
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