Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 9, Problem 1P
To determine
The trend rate of growth of the economy .
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Suppose that a country's annual growth rates were 5, 3, 4 , -1 , -2 , 2 , 3 , 4, 6, and 3 in yearly sequence over a 10 - year period . a ) What was the country's trend rate of growth over this period ? b ) Which set of years most clearly demonstrates an expansionary phase of the business cycle ? c ) Which set of years best illustrates a recessionary phase of the business cycle ?
Suppose that a country's annual growth rates were as follows over a 10-year period.
Year
2
3
6
10
Growth Rate
5
3
4
-3
-4
2
3
4
What was the country's trend rate of growth over this period?
Instruction: Round your answer to one decimal place.
The trend rate of growth= 23 percent
Which set of years most clearly demonstrates an expansionary phase of the business cycle?
Years
6 through [ 9
Which set of years best illustrates a recessionary phase of the business cycle?
Years
4 through
Assume that an economy currently has a nominal GDP of $500 billion. If the economy were to grow at 3%, calculate what nominal GDP will be in five years, ten years, twenty years, and forty years if it is able to sustainthat same growth rate each year.
Chapter 9 Solutions
Macroeconomics
Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Prob. 11DQCh. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8P
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- Describe the various components of fluctuations in economic activity over time. Because economic activity fluctuates, how is long-term growth possible?arrow_forward1. What does the latest available data say about the current rate of GDP growth? 2. Is the economy in a recession or an expansion?arrow_forward1. What is this time series g raphing? 2. What is the base year for this time series? 3. What do you notice about the shaded gray areas? a. real GDP per capita decreases b. real GDP per capita increases c. real GDP per capita shows no trends during recessions. 4. What is the overall trend of this series? a. real GDP per capita is increasing over time. b. real GDP per capita is hovering around the same levels c. real GDP per capita was falling, but has increased a little in the past two decades. 5. What is real GDP per capita right before the Great Recession? $ a. $51,637 b. $40,000 c. $15,000 d. $100,000 6. When did real GDP per capita reach this level again? a. 2013 b. 2020 c. 2009 d. 2023 7. What is the real GDP per capita in 2000? a. Approximately $46,000 b. Approximately $20,000 c. Approximately $100,000arrow_forward
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