The following table shows data on a hypothetical country's real GDP from 1970 through 1978: Year Real GDP (Billions of Dollars ) 1970 368 1971 380 1972 384 1973 392 1974 408 1975 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 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 definitely represents a peak. Finally, place the grey point (star symbol) on the graph to indicate the point on the real GDP curve that definitely represents a trough. Real GDP Peak Trough 1970 1971 1972 1973 1974 1975 1976 1977 1978 440 4 REAL GDP (Billions of dollars) YEAR Growth trend Calculate the percentage change in real GDP in each of the years shown. (Hint: The percentage change in real GDP equals 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 percentage 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 Real GDP Growth 1971 1972 1973 1974 1975 1976 1977 1978 5 4 3 210 ANNUAL REAL GDP GROWTH RATE (Percent) YEAR This economy experienced a contraction in the years. On the first graph (showing real GDP), this contraction is seen as a period in which the level of real GDP. On the second graph (showing annual change in real GDP ), this contraction is seen as a period in which the growth rate of real GDP. True or False: This economy was experiencing an expansion in 1971. True False
The following table shows data on a hypothetical country's real GDP from 1970 through 1978: Year Real GDP (Billions of Dollars ) 1970 368 1971 380 1972 384 1973 392 1974 408 1975 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 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 definitely represents a peak. Finally, place the grey point (star symbol) on the graph to indicate the point on the real GDP curve that definitely represents a trough. Real GDP Peak Trough 1970 1971 1972 1973 1974 1975 1976 1977 1978 440 4 REAL GDP (Billions of dollars) YEAR Growth trend Calculate the percentage change in real GDP in each of the years shown. (Hint: The percentage change in real GDP equals 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 percentage 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 Real GDP Growth 1971 1972 1973 1974 1975 1976 1977 1978 5 4 3 210 ANNUAL REAL GDP GROWTH RATE (Percent) YEAR This economy experienced a contraction in the years. On the first graph (showing real GDP), this contraction is seen as a period in which the level of real GDP. On the second graph (showing annual change in real GDP ), this contraction is seen as a period in which the growth rate of real GDP. True or False: This economy was experiencing an expansion in 1971. True False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:The following table shows data on a hypothetical
country's real GDP from 1970 through 1978: Year Real
GDP (Billions of Dollars
) 1970 368 1971 380 1972 384 1973 392 1974 408 1975
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 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 definitely represents a peak.
Finally, place the grey point (star symbol) on the graph
to indicate the point on the real GDP curve that
definitely represents a trough. Real GDP Peak Trough
1970 1971 1972 1973 1974 1975 1976 1977 1978 440 4
REAL GDP (Billions of dollars) YEAR Growth trend
Calculate the percentage change in real GDP in each of
the years shown. (Hint: The percentage change in real
GDP equals 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
percentage 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
Real GDP Growth
1971 1972 1973 1974 1975 1976 1977 1978 5 4 3 210
ANNUAL REAL GDP GROWTH RATE (Percent) YEAR
This economy experienced a contraction in the years.
On the first graph (showing real GDP), this contraction
is seen as a period in which the level of real GDP. On
the second graph (showing annual change in real GDP
), this contraction is seen as a period in which the
growth rate of real GDP. True or False: This economy
was experiencing an expansion in 1971. True False
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