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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. Use 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 thes 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 definitely represents a peak. Finally, place the grey point (star symbol) on the graph to indicate the point on the Real GDP aun that definitely represents a trough. $40 Real GDP 120 Peak Trough Growh trend 480 470 10 1 192 194 1s 1 YEAR Calculate the percentage change in Real GDP in each of the years shown. (Hint: The percentage change in Real GDP captures the change in GDP fr the previous year to the current year. For example, you can calculate the percentage change for 1971 by finding the change in GDP from 1970 to 1971, dividing this change by the level of GDP in 1970, and then multiplying the result by 100.) (sop osual 00 TV

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. Use 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 thes 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 definitely represents a peak. Finally, place the grey point (star symbol) on the graph to indicate the point on the Real GDP aun that definitely represents a trough. $40 Real GDP 120 Peak Trough Growh trend 480 470 10 1 192 194 1s 1 YEAR Calculate the percentage change in Real GDP in each of the years shown. (Hint: The percentage change in Real GDP captures the change in GDP fr the previous year to the current year. For example, you can calculate the percentage change for 1971 by finding the change in GDP from 1970 to 1971, dividing this change by the level of GDP in 1970, and then multiplying the result by 100.) (sop osual 00 TV

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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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 percentage change in Real GDP captures the change in GDP from the previous year to the current year. For example, you can calculate the percentage change for 1971 by finding the change in GDP from 1970 to 1971, dividing this change by the level of GDP in 1970, and then multiplying the result by 100.) Once you've calculated the percentage change for each of the years, use the orange poirnts (square symbol) to plot your results on the following granh rounded to the nearest nercent For each vear pllot the gerrentage chage from the vear before (Hint: For example vou stouldd plot the REAL GDP (BIlions of dollars) +
Transcribed Image Text: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 percentage change in Real GDP captures the change in GDP from the previous year to the current year. For example, you can calculate the percentage change for 1971 by finding the change in GDP from 1970 to 1971, dividing this change by the level of GDP in 1970, and then multiplying the result by 100.) Once you've calculated the percentage change for each of the years, use the orange poirnts (square symbol) to plot your results on the following granh rounded to the nearest nercent For each vear pllot the gerrentage chage from the vear before (Hint: For example vou stouldd plot the REAL GDP (BIlions of dollars) +
510 Peak 500 490 Trough 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 percentage change in Real GDP captures the change in GDP from the previous year to the current year. For example, you can calculate the percentage change for 1971 by finding the change in GDP from 1970 to 1971, dividing this change by the level of GDP in 1970, and then multiplying the result by 100.) 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 perentage change from the year before. (Hint: For example, you should plot the growth rate from 1970 to 1971 with a horizontal coordinate of 1971.) Annual Change 1971 1972 1973 1974 1975 1978 1977 1978 YEAR On the first graph (showing Real GDP), this contraction is seen as a period in On the second graph (showing annual change in Real GDP), this contraction is This economy experienced a contraction in the years which the level of Real GDP seen as a period in which the growth rate of Real GDP In 1972, which of the following phases in the business cycle could this economy have been experiencing? Check all that apply. O Peak O Contraction O Trough O Expansion O Recovery REAL GDP (Bilions of de ANNUAL CHANGE IN REAL GDP (Percent)
Transcribed Image Text:510 Peak 500 490 Trough 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 percentage change in Real GDP captures the change in GDP from the previous year to the current year. For example, you can calculate the percentage change for 1971 by finding the change in GDP from 1970 to 1971, dividing this change by the level of GDP in 1970, and then multiplying the result by 100.) 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 perentage change from the year before. (Hint: For example, you should plot the growth rate from 1970 to 1971 with a horizontal coordinate of 1971.) Annual Change 1971 1972 1973 1974 1975 1978 1977 1978 YEAR On the first graph (showing Real GDP), this contraction is seen as a period in On the second graph (showing annual change in Real GDP), this contraction is This economy experienced a contraction in the years which the level of Real GDP seen as a period in which the growth rate of Real GDP In 1972, which of the following phases in the business cycle could this economy have been experiencing? Check all that apply. O Peak O Contraction O Trough O Expansion O Recovery REAL GDP (Bilions of de ANNUAL CHANGE IN REAL GDP (Percent)
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