The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions. 20102020Total spending ($ million)89104.12Local GDP ($ millions)110134Population50,00056,275CPI deflators (2012=1)0.961.05 Calculate % change for City A’s total spending from 2010 to 2020 in current dollars.*Results round to the nearest 2 decimal places. Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars.*Results round to the nearest 2 decimal places. Why does % change calculated from constant dollars differ from % change calculated from current dollar?Calculate per capita spending in 2010 and 2020, respectively, using constant dollars.*Results round to the nearest dollar. 2010 per capita spending:2020 per capita spending:Calculate the compound annual growth rate of per capita spending from 2010 to 2020Calculate spending-to-GDP ratios in 2010 and 2020, respectively.*Results round to the nearest 2 decimal places. 2010 spending-to-GDP ratio:2020 spending-to-GDP ratio:Interpret what the two spending-to-GDP ratios tell us about City A’s spending trend.Assuming City A’s population grows at a constant rate in the next decade. Based on the information in the table, estimate City A’s population in 2030. *Final results round to the nearest integer.

Gross Domestic Product (GDP) measures the value of final goods and services produced within the…

Answered: The table below presents a brief…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions.

Calculate % change for City A’s total spending from 2010 to 2020 in current dollars.

*Results round to the nearest 2 decimal places.

Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars.

*Results round to the nearest 2 decimal places.

Why does % change calculated from constant dollars differ from % change calculated from current dollar?
Calculate per capita spending in 2010 and 2020, respectively, using constant dollars.

*Results round to the nearest dollar.

2010 per capita spending:

2020 per capita spending:

Calculate the compound annual growth rate of per capita spending from 2010 to 2020
Calculate spending-to-GDP ratios in 2010 and 2020, respectively.

*Results round to the nearest 2 decimal places.

2010 spending-to-GDP ratio:

2020 spending-to-GDP ratio:

Interpret what the two spending-to-GDP ratios tell us about City A’s spending trend.
Assuming City A’s population grows at a constant rate in the next decade. Based on the information in the table, estimate City A’s population in 2030.

*Final results round to the nearest integer.

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