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The following table shows data on a hypothetical country's Real GDP from 1980 through 1988: REAL GDP (Billions of dollars) The green line on the following graph shows the economy's long-term growth trend. 560 540 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. 530 520 8510 Real GDP Year (Billions of Dollars) 1980 475 490 1981 1982 1983 1984 1985 1986 1987 1988 480 500+ 470 480 505 500 485 490 500 505 525 Growth trend Real GDP + Peak Trough ?

The following table shows data on a hypothetical country's Real GDP from 1980 through 1988: REAL GDP (Billions of dollars) The green line on the following graph shows the economy's long-term growth trend. 560 540 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. 530 520 8510 Real GDP Year (Billions of Dollars) 1980 475 490 1981 1982 1983 1984 1985 1986 1987 1988 480 500+ 470 480 505 500 485 490 500 505 525 Growth trend Real GDP + Peak Trough ?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Step 1: Peak and Trough The following table shows data on a hypothetical country's Real GDP from 1980 through 1988: REAL GDP (Billions of dollars) Real GDP Year (Billions of Dollars) 1980 475 &&&&&&$ $ $ $ 1981 The green line on the following graph shows the economy's long-term growth trend. 510 1982 1983 1984 1985 1986 1987 1988 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. 480 505 500 485 490 500 505 525 Growth trend 1980 1981 1982 1983 1984 1985 1986 1987 1988 YEAR 1984 1982 1986 1983 O Real GDP + Peak * Trough (?) Based on the graph, in which of the following years did the economy experience a peak? Check all that apply.
Transcribed Image Text:Step 1: Peak and Trough The following table shows data on a hypothetical country's Real GDP from 1980 through 1988: REAL GDP (Billions of dollars) Real GDP Year (Billions of Dollars) 1980 475 &&&&&&$ $ $ $ 1981 The green line on the following graph shows the economy's long-term growth trend. 510 1982 1983 1984 1985 1986 1987 1988 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. 480 505 500 485 490 500 505 525 Growth trend 1980 1981 1982 1983 1984 1985 1986 1987 1988 YEAR 1984 1982 1986 1983 O Real GDP + Peak * Trough (?) Based on the graph, in which of the following years did the economy experience a peak? Check all that apply.
Once again, consider the following data on a hypothetical country's Real GDP from 1980 through 1988. ANNUAL CHANGE IN REAL GDP (Percent) 3 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 1981 by finding the change in GDP from 1980 to 1981, dividing this change by the level of GDP in 1980, and then multiplying the result by 100.) 2 Real GDP Year (Billions of Dollars) 1980 475 Use the orange points (square symbol) to plot the results of your calculations on the following graph. (Hint: Round 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 1980 to 1981 with a horizontal coordinate of 1981.) 1 1981 -3 1982 1983 1984 1985 1986 1987 1988 1981 480 505 500 485 490 500 505 525 1982 1983 1984 1985 1986 1987 YEAR Expansion 1988 -0 Annual Change ? 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 . In 1988, which of the following phases in the business cycle could this economy have been experiencing? Check all that apply.
Transcribed Image Text:Once again, consider the following data on a hypothetical country's Real GDP from 1980 through 1988. ANNUAL CHANGE IN REAL GDP (Percent) 3 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 1981 by finding the change in GDP from 1980 to 1981, dividing this change by the level of GDP in 1980, and then multiplying the result by 100.) 2 Real GDP Year (Billions of Dollars) 1980 475 Use the orange points (square symbol) to plot the results of your calculations on the following graph. (Hint: Round 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 1980 to 1981 with a horizontal coordinate of 1981.) 1 1981 -3 1982 1983 1984 1985 1986 1987 1988 1981 480 505 500 485 490 500 505 525 1982 1983 1984 1985 1986 1987 YEAR Expansion 1988 -0 Annual Change ? 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 . In 1988, which of the following phases in the business cycle could this economy have been experiencing? Check all that apply.
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