Let's normalize Canadian GDP in 2005 to 100. Out of that, consumption was 70, investment was 20, government expenditure 20, and Canada ran a trade deficit of 10. In the following decade consumption grew at 1.5% per year, investment increased by 10% over the decade, and both government and net exports remained unchanged. Q: Calculate the average annual growth rate of GDP. Show your derivations.<

Let's normalize Canadian GDP in 2005 to 100. Out of that, consumption was 70, investment was 20, government expenditure 20, and Canada ran a trade deficit of 10. In the following decade consumption grew at 1.5% per year, investment increased by 10% over the decade, and both government and net exports remained unchanged. Q: Calculate the average annual growth rate of GDP. Show your derivations.<

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose that the annual rates of growth of real GDP of Econoland over a five-year period were as follows: Year Growth Rate 1 4% 2 28 3 -2% 4 48 5 6% What was the average of these growth rates in Econoland over these five years? Instructions: Round your answer to one decimal place. % What term would economists use to describe what happened in year 3? (Click to select) If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been the average growth rate? 1%
You are going to compare and contrast the GDP of the United States to that of another country of your choice for the last 3 years. Your report in narrative format should address the following questions: Describe the current GDP growth rate of the two countries. Which component of the GDP of the two countries changed the most for the last 3 years? Identify the possible causes of the changes. Describe the biggest component of the GDP of the two countries. What recommendations would you make in order to boost the GDP of the two countries?
In 1980, Denmark had a GDP of $90 billion (measured in US dollars) and a population of 6.1 million. In 2000, Denmark had a GDP of $150 billion (measured in US dollars) and a population of 6.2 million. By what percentage did Denmark's GDP per capita rise between 1980 and 2000? Question 23 options: 205% 144% 64% 120%
In year 1, a country has saving rates, s=0.1, productivity a=2 and depreciation rate d=0.1 . In year 2, the same country has s=0.1, a=1, d=0.2 Using the endogenous growth model, find the economy’s growth rate in year 1 and What is the state of the economy in year 1? (Use business cycle words) Using the endogenous growth model, find the economy’s growth rate in year 2.What is the state of the economy in year 2? (Use business cycle words) If in year 1, delta c/c=0.2, delta u /u =-0.1 and in year 2, deltac/c=-0.1, delta u/u =0.15 , describe the variables and using business cycle words Please answer the business cycle explanation part!
Year Real GDP Nominal GDP 2019 $15,292.67 $17,081.38 2020 $17,822.90 $18,350.11 2021 $18,521.37 $19,397.19 Refer to the table above. What is the growth rate in real GDP from 2020 to 2021? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
Country A produces GDP according to the following equation: GDP = 5√K and has a capital stock of 9,411. If the country devotes 13% of its GDP to producing or repairing investment goods, how much is this country currently investing? Rounds your answer to two decimal places.
The following table shows the monthly total expenditure in 2010 for an economy expressed in thousands of Canadian dollars (CAD). Month Value Jan 358.6 Feb 373 Mar 387.9 Apr May 403.5 419.7 Jun 436.5 Jul Aug Sep 454 472.3 491.3 Oct 511.1 Nov 531.6 Dec 553.1 e. What is the annualized growth rate in percentage between January and February 2010 using the exact formula? Round your answer to the nearest second decimal. f. What is the annualized growth rate in percentage between November and December 2010 using the approximation formula? Round your answer to the nearest second decimal. g. What is the value of the index base 100 = April 2010 in November 2010? Round your answer to the nearest second decimal.
A small economy only produces two goods: steak and potatoes. This information is shown in the table. Based on the table, if year 1 is the base year, the growth rate of real GDP is: Good Steak Potato 6.6%. 8.0%. 9.4%. 10.8%. Year 1 Price $15 $1 Quantity 1,000 50,000 Year 2 Price $20.00 $0.50 Quantity 800 60,000
Suppose we have the following data given to us in this table. Year Real GDP Nominal GDP Population 2010 11,563 12,697 52 2020 12,406 13,395 49 Given this data, we would expect the quality of life to have increased by what percentage over the last 10 years? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
The Wakandan GDP for the year 2040 was $87,000. Government expenditures were $29,000 and investment was $6,000. They exported $15,000 worth of vibranium and imported $14,000 worth of coffee beans. If these are the only relevant transactions, what is the value of government spending? Round to two decimal places. Do not enter the currency symbol, but enter the negative sign if appropriate. If your answer is -$1.125, enter -1.13. 29,000
If Real GDP in the previous period was $15,840 billion, the economic growth rate is ________% in the current period, rounded to the tenth (one decimal place)
1. The following table shows Spain's (awalizr) quarterly real GDP growth rates for the 2007–2012 period. (Roman numbers refer to quarters.) Variable 2007 2007 2007 2007 2008 2008 I II III IV I II Real GDP 7.6 7.3 6.5 6.4 5.6 4.6 Variable 2008 2008 2009 2009 2009 2009 III IV I II III IV Real GDP 3.1 0.5 -0.1 -4.1 -4.5 -3.3 Variable 2010 2010 2010 2010 2011 2011 I II III IV I II Real GDP -1.5 -0.2 0.0 0.4 0.5 0.5 Variable 2011 2011 2012 2012 2012 2012 III IV II III IV Real GDP 0.6 0.0 -0.7 -1.4 -1.6 -1.9 а) Plot real GDP growth rate in a graph, and identify a trend in the data. b) Based on the data shown, identify the beginning (i.e., the year and the quarter) of the current recession. 2. Unemployment is a very important topic in macroeconomics. A high unemployment rate means that a lot of individuals willing to work cannot find a job. This is bad for the economy, as some resources (i.e., labour) remain idle. Comment on the effects that being unemployed have on an individual.