Say that you have values for real GDP that are 10 years apart (for example for 2009 and 2019). If youused the percent change formula on these values, the number you calculate would be the averageannual growth rate over these 10 years.trueO false In this section we looked at the growth rate formula for measuring the average annual growth rate of avariable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may beyears apart. For example, in the worksheet you computed the average annual rate of inflation from1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the samevalue 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 thepercentage change and the growth rate formulas give you the same answer?yesno

Percentage change formula of growth rate is ((Present GDP - Initial GDP) ÷ Initial GDP) * 100…

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 false

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 false

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

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

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

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