What were the approximate levels ($) of real GDP in the 2nd and 3rd quarters of 2020? (HINT: Use your estimates of real GDP growth to calculate the levels.) 2020:Q2 16,9582020:Q3 18,777 2020:Q2 18,6502020:Q3 18,902 2020:Q2 17,3032020:Q3 18,584 2020:Q2 18,2602020:Q3 19,343

To get the growth rate in real GDP on a quarterly basis: Growth rate, g = (Q3-Q2)*100/Q22020:Q2 - 16,958 2020:Q3 - 18,777 g = (18777-16958)*100/16958 g = 10.726%2020:Q2 - 18,650 2020:Q3 - 18,902 g = (18902-18650)*100/18650 g = 1.35%2020:Q2 - 17,303 2020:Q3 - 18,584 g = (18584-17303)*100/17303 g = 7.40%2020:Q2 - 18,260 2020:Q3 - 19,343 g = (19,343-18260)*100/18260 g = 5.93%The growth rate will be = (10.726+1.35 + 7.4 + 5.93) / 4 The growth rate will be = 6.35%Real GDP Q2 = (16,958 + 18,650 + 17,303 + 18,260) / 4 Real GDP Q2 = 71171 / 4 Real GDP Q2 = $ 17792.75 Real GDP Q3 = (1+Growth rate ) *17792.75 Real GDP Q3 = (1+0.0635) *17792.75 Real GDP Q3 = $ 18922.59

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What were the approximate levels ($) of real GDP in the 2^nd and 3^rd quarters of 2020? (HINT: Use your estimates of real GDP growth to calculate the levels.)

		2020:Q2 16,958 2020:Q3 18,777
		2020:Q2 18,650 2020:Q3 18,902
		2020:Q2 17,303 2020:Q3 18,584
		2020:Q2 18,260 2020:Q3 19,343

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