Oil prices have increased a great deal in the last decade. The following table shows the average oil price for each year since 1949.Many companies use oil products as a resource in their own business operations (like airline firms and manufacturers of plasticproducts). Managers of these firms will keep a close watch on how rising oil prices will impact their costs. The interest rate in thePV/FV equations can also be interpreted as a growth rate in sales, costs, profits, and so on.Year19491950195119521953195419551956195719581959196019611962196319641965196619671968perbarrel$ 2.54$ 2.51$2.53$ 2.53$ 2.68$2.78$ 2.77$ 2.79$ 3.09$ 3.01$ 2.90$ 2.88$ 2.89$2.90$ 2.89$ 2.88$2.86$ 2.88$ 2.92$ 2.94Year1969197019711972197319741975197619771978197919801981198219831984198519861997198Annual growth rateAverage Oil Pricesper barrel$ 3.09$3.18$3.39$3.39$ 3.89$ 6.87Year198919901991199219931994$ 7.67 1995$8.19 1996$ 8.57 1997$9.001998$12.64 1999$ 21.59 2000$31.77 2001$ 28.52 2002$26.19 2003$25.88 2004$24.09 20052006$15.40 20072008$ 12.51$12.58per barrel$ 15.86$ 20.03$ 16.54$15.99$ 14.25$ 13.19$ 14.62$18.46$ 17.23$ 10.87$15.56$ 26.72$ 21.84$ 22.51$ 27.54$38.93$ 46.47$ 58.30$ 64.67$ 91.48%Year200920102011201220132014201520162017201820192020per barrel$ 53.48$71.21$ 87.04$93.02$97.91$93.26$48.69Using the 1949 oil price and the 1966 oil price, compute the annual growth rate in oil prices during those 17 years.Note: Round your answer to 2 decimal places.$43.14$50.88$ 65.23$ 56.99$39.23

The Compound Annual Growth Rate (CAGR) provides the mean annual growth rate of an investment over a…

Answered: Using the 1949 oil price and the 1966…

Using the 1949 oil price and the 1966 oil price, compute the annual growth rate in oil prices during those 17 years. Note: Round your answer to 2 decimal places.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.4CE

See similar textbooks

Similar questions

This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June, 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded a quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Required: Question 1. Clearly explain what Real GDP per capita means.Clearly explain why Real GDP per capita decreased whereas there was still growth in Real GDP for the quarter ending June 2019. Question 2. Given the economic conditions described above, predict how the following key…
This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June, 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded a quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Question 4. Given the economic conditions described above, recommend the appropriate monetary policy that the Reserve Bank of Australia (RBA) should implement.Clearly explain why this type of monetary policy is needed. Question 5. Describe in details the steps the RBA must undertake to…
This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Question: Draw appropriate graph(s) to illustrate the Australian economy in June 2019, considering the previously described economic conditions.
This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Required: Question 1. Clearly explain what Real GDP per capita means.Clearly explain why Real GDP per capita decreased whereas there was still growth in Real GDP for the quarter ending June 2019. Question 2. Given the economic conditions described above, predict how the following key…
This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Questions: Question 4. Given the economic conditions described above, recommend the appropriate monetary policy that the Reserve Bank of Australia (RBA) should implement.Clearly explain why this type of monetary policy is needed. Question 5. Describe in detail the steps the RBA must…
George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Resin Productivity Change if necessary). The productivity change for each of the inputs (Labor, Resin, Capital, and Energy) is: Labor Productivity Change = if necessary). = Units Produced Labor (hours) Resin (pounds) Capital Invested ($) Energy (BTU) Last Year 1,200 300 60 10,000 2,900 Energy Productivity Change = if necessary). Now 1,200 250 46 11,000 2,750 % (enter your response as a percentage rounded to two decimal places and include a minus sign % (enter your response as a percentage rounded to two decimal places and include a minus sign Capital Invested…
Read the following extract and answer questions?South Africa’s economy grew by 1.1% in the first quarter of the year (4 marks) Stats SA has published the latest gross domestic product (GDP) data covering the first quarter of the year, showing that the economy grew by 1.1% in the first three months of 2021.The growth follows a revised 1.4% rise in real GDP in the fourth quarter of 2020. On an annualised basis, theeconomy grew 4.6% quarter-on-quarter. Following confusion caused by the annualisation of GDP data in 2020 – amid the Covid-19 pandemic andresulting lockdowns – Stats SA said it would no longer use the annualised data as the headline GDP statistic. During periods of steady economic growth, annualising is a useful way of expressing quarter-on-quarterperformance in annual terms, Stats SA said. However, during periods of economic instability, annualising can be misleading, because it exaggerates growth rates that are unlikely to be repeated. The central problem that is evident in…
An economist predicts that the cost of food will increase by 4% per year for the next several years. Part A: Use the economist's prediction to write an explicit rule for a geometric sequence that gives the cost in dollars of a box of cereal in year n that costs $3.20 in year 1. Part B: What is the fourth term of the sequence, and what does it represent in this situation? 5
Assume that the average or mean monthly household consumption expenditure for Malaysia rose from RM3,578 in 2018 to RM4,033 in 2020, growing 6% per annum at nominal value, according to the statistics department. However, in terms of real value — which refers to the constant price using the Consumer Price Index with the base year 2014 as the deflator — annual growth rate is 3.9% for the same period, mentioned on its Household Expenditure Survey Report 2020. b) i. Use the aggregate expenditures model to show how government fiscal policy could eliminate either a recessionary expenditure gap or an inflationary expenditure gap. ii. Explain how equal-size increases in G and T could eliminate a recessionary gap and how equal-size decreases in G and T could eliminate an inflationary gap.
Assume that the average or mean monthly household consumption expenditure for Malaysia rose from RM3,578 in 2018 to RM4,033 in 2020, growing 6% per annum at nominal value, according to the statistics department. However, in terms of real value — which refers to the constant price using the Consumer Price Index with the base year 2014 as the deflator — annual growth rate is 3.9% for the same period, mentioned on its Household Expenditure Survey Report 2020. a) Suppose that consumer spending initially rises by RM5 billion for every 1 percent rise in household wealth and that investment spending initially rises by RM20 billion for every 1 percentage point fall in the real interest rate. Also, assume that the economy’s multiplier is 4. i. If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by two percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level? ii. In what…
In the year 2000, the total amount of consumer loans in the United States topped $550 billion dollars. According to the Archival Federal Reserve Economic Data report, the total amount of consumer loans for the United States can be approximated by the function L(t) = 0.286t²-3.669t+24.475 where t is the number of years after 1950 and L(t) is given in billions of dollars. Evaluate and interpret the instantaneous rate of change in the total amount of consumer loans in the United States in 2020. O a. The total amount of consumer loans in the United States is expected to grow in 2020 at a rate of 11.69 billion dollars. Ob. The total amount of consumer loans in the United States is expected to grow in 2020 at a rate of 30.65 billion dollars. Oc. The total amount of consumer loans in the United States is expected to grow in 2020 at a rate of 34.32 billion dollars. Od. The total amount of consumer loans in the United States is expected to grow in 2020 at a rate of 36.37 billion dollars.
Refer to the statement below and answer the following questions: Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said Malaysia is expected to continue recording a slower economic growth in 2Q 2020 due to the Covid-19 pandemic, based on the near-term economic direction portrayed by the Leading Index (LI) for the reference month of February 2020. Mohd Uzir said GDP growth for 1Q 2020, meanwhile, was dragged by negative growth across all sectors except for services and manufacturing which grew 3.1% and 1.5% respectively. "Private final consumption expenditure in this quarter was on essential products such as food and non-alcoholic beverage, communication and housing, water, electricity and other fuels," he said in a statement on Malaysia's economic performance in 1Q 2020, today. He added that the Movement Control Order (MCO), which began on March 18, has resulted in lower household expenditure, which in turn, directly affected the industries related to food and beverage,…