The table below presents a brief summary of City Y’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 per capita spending in 2010 and 2020, respectively, using constant dollars.*Results round to the nearest dollar. Calculate the compound annual growth rate of per capita spending from 2010 to 2020Interpret what the two spending-to-GDP ratios tell us about City Y’s spending trend.Assuming City Y’s population grows at a constant rate in the next decade. Based on the information in the table, estimate City Y’s population in 2030.

Given that; 2010 2020 Total spending ($ million) 89 104.12 Local GDP ($ millions)…

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 Y’s total spending, local GDP, and population changes. Read the table and answer the following questions.

Calculate per capita spending in 2010 and 2020, respectively, using constant dollars.

*Results round to the nearest dollar.

Calculate the compound annual growth rate of per capita spending from 2010 to 2020
Interpret what the two spending-to-GDP ratios tell us about City Y’s spending trend.
Assuming City Y’s population grows at a constant rate in the next decade. Based on the information in the table, estimate City Y’s population in 2030.

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