Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below: Show all calculations and formulae If it is predicted that the GDP will increase to 22 000 in 2020, calculate the growth rate between 2019 and 2020.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below:

Show all calculations and formulae

If it is predicted that the GDP will increase to 22 000 in 2020, calculate the growth rate between 2019 and 2020.

 

COMPONENT
R millions
Consumption expenditure (C)
9 000
Investment (0
6 500
Government spending (G)
7 000
Exports (X)
1 800
Imports (Z)
2 400
Depreciation
700
Foreign payment to the rest of the
300
world
Foreign payment from the rest of the
250
world
Transcribed Image Text:COMPONENT R millions Consumption expenditure (C) 9 000 Investment (0 6 500 Government spending (G) 7 000 Exports (X) 1 800 Imports (Z) 2 400 Depreciation 700 Foreign payment to the rest of the 300 world Foreign payment from the rest of the 250 world
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