Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 14, Problem 14.6RDE
Subpart (a):
To determine
The average annual rate for both real GDP and growth rate of M1.
Subpart (b):
To determine
The average annual rate for both real GDP and growth rate of M1.
Subpart (c):
To determine
The average annual rate for both real GDP and growth rate of M1.
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Students have asked these similar questions
Year
Real GDP
Nominal GDP
2019
$15,510.79
$17,310.70
2020
$17,495.23
$18,761.83
2021
$18,209.59
$19,253.97
Refer to the table above. What is the growth rate in real GDP from 2020 to 2021? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.
Suppose that in a particular country, nominal gross domestic product(GDP) grew by 8 percent and the GDP deflator increased by 10 percent. The country's growth rate of real GDP would be approximately equal to?
There is a chart for quesition 2 that is attached as an image.
Suppose that work hours in New Zombie are 200 in year 1 and productivity is $8 per hour worked. What is New Zombie’s real GDP? If work hours increase to 210 in year 2 and productivity rises to $10 per hour, what is New Zombie’s rate of economic growth? Explain why sustained long-term economic growth comes from increases in labor productivity. Why do you think the trend rate of U.S. productivity growth has increased since the earlier 1973–1995 period?
Hint: The quantity of labor and increases in labor productivity are important sources of economic growth. Between 1953 and 2015, in the US economy the labor force increased from 63 million to 158 million workers. Productivity growth has usually been the more significant factor. To calculate real GDP in a given year you have to multiply hours worked by productivity.
2. Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its…
Chapter 14 Solutions
Macroeconomics (7th Edition)
Ch. 14 - Prob. 14.1.1RQCh. 14 - Prob. 14.1.2RQCh. 14 - Prob. 14.1.3RQCh. 14 - Prob. 14.1.4RQCh. 14 - Prob. 14.1.5PACh. 14 - Prob. 14.1.6PACh. 14 - Prob. 14.1.7PACh. 14 - Prob. 14.1.8PACh. 14 - Prob. 14.1.9PACh. 14 - Prob. 14.2.1RQ
Ch. 14 - Prob. 14.2.2RQCh. 14 - Prob. 14.2.3PACh. 14 - Prob. 14.2.4PACh. 14 - Prob. 14.2.5PACh. 14 - Prob. 14.2.6PACh. 14 - Prob. 14.2.7PACh. 14 - Prob. 14.2.8PACh. 14 - Prob. 14.2.9PACh. 14 - Prob. 14.2.10PACh. 14 - Prob. 14.3.1RQCh. 14 - Prob. 14.3.2RQCh. 14 - Prob. 14.3.3RQCh. 14 - Prob. 14.3.4RQCh. 14 - Prob. 14.3.5PACh. 14 - Prob. 14.3.6PACh. 14 - Prob. 14.3.7PACh. 14 - Prob. 14.3.8PACh. 14 - Prob. 14.3.11PACh. 14 - Prob. 14.3.12PACh. 14 - Prob. 14.4.1RQCh. 14 - Prob. 14.4.2RQCh. 14 - Prob. 14.4.3RQCh. 14 - Prob. 14.4.4RQCh. 14 - Prob. 14.4.5PACh. 14 - Prob. 14.4.6PACh. 14 - Prob. 14.4.7PACh. 14 - Prob. 14.4.8PACh. 14 - Prob. 14.4.9PACh. 14 - Prob. 14.4.10PACh. 14 - Prob. 14.4.11PACh. 14 - Prob. 14.5.1RQCh. 14 - Prob. 14.5.2RQCh. 14 - Prob. 14.5.3RQCh. 14 - Prob. 14.5.4PACh. 14 - Prob. 14.5.5PACh. 14 - Prob. 14.5.6PACh. 14 - Prob. 14.5.7PACh. 14 - Prob. 14.5.8PACh. 14 - Prob. 14.5.9PACh. 14 - Prob. 14.5.10PACh. 14 - Prob. 14.1RDECh. 14 - Prob. 14.2RDECh. 14 - Prob. 14.3RDECh. 14 - Prob. 14.4RDECh. 14 - Prob. 14.5RDECh. 14 - Prob. 14.6RDE
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Similar questions
- Why would an economist use real GDP rather than nominal GDP to measure growth? Nominal GDP allows you to compare GDP from different years Nominal GDP is a better measure of a nation's standard of living Real GDP is adjusted for inflation and reflects output/production more accurately Real GDP is calculated for a longer period of time than does nominal GDParrow_forwardCalculate the quarter-over-quarter percentage change in GDP for the last four quarters: Quarter-Year GDP (Billions USD) % GDP Growth Q4-2020 5,267 -- Q1-2021 5,301 Q2-2021 5,398 Q3-2021 5,718 Q4-2021 6,104arrow_forwardUse some of the information below to calculate an economy's 2022-2023 economic growth rate. 2022 Nominal GDP: $200 billion 2023 Nominal GDP: $205 billion 2022 Real GDP: $227 billion 2023 Real GDP: $236 billion September 2022 Consumer Price Index: 150 September 2023 Consumer Price Index: 153 September 2022 Number of employed: 110 million September 2023 Number of employed: 120 million September 2022 Number of unemployed: 10 million September 2023 Number of unemployed: 11 million 5.3% 2.0% 4.0% 2.5% 5.6%arrow_forward
- Why do economists prefer to use real gross domestic product (RGDP) instead of nominal gross domestic product (NGDP) when measuring the economic growth of a country? Why is real GDP considered more relevant than the other?arrow_forwardThe following table gives real GDP figures for an economy for four years. Fill in the growth rate for each year, and then find the average annual growth rate for the period. Enter all answers as percentages rounded to one decimal place. The average annual growth rate for this period is Year 1999 2000 2001 2002 %. Real GDP 140 billion 151.2 billion 166.3 billion 176.3 billion Growth Rate (%) % % %arrow_forwardEconomists often are interested in percentage change from one period to the next. The percentage rate of change of gross domestic product (GDP) is an important macroeconomic variable. If in 2010 GDP was $11,150 billion dollars, and GDP increased to $11,766 billion in 2011, what is the growth rate of the U.S. economy in 2011? %. (Enter your response rounded to one decimal place.)arrow_forward
- If real GDP was $9,950 billion in Year 2008 and $10,270 billion in Year 2009. What was the rate of economic growth in 2009? 1.6 percent 2.4 percent 3.2 percent 4.3 percentarrow_forwardGiven the data table below: Year 2015 2016 2017 2018 2019 2020 2. GDP Deflator, Real GDP, 2015-100 2015-100 100.00 100.40 103.30 106.90 106.50 103.30 423,444.10 438,712.15 458,776.09 475,673.62 480,957.65 461,185.67 The Average Annual GDP Growth from 2018-2020 is (Hint: You'll need growth rates from 2017-2018, 2018-2019, 2019-2020 to answer this)arrow_forwardGorgonzola is a small island nation with a simple economy that produces only six goods: sugar cane, yo-yos, rum, peanuts, harmonicas, and peanut butter. Assume that half of all sugar cane is used to produce rum, and one-fifth of all the peanuts are used to produce peanut butter. Use the production and price information in the table to calculate real GDP for 2013, 2014, and 2015 using 2014 as the base year. What is the growth rate of real GDP from 2013 to 2014 and from 2014 to 2015?arrow_forward
- 7. China's trend growth rate of real GDP per person was 2.2 percent a year before 1980 and 8.7 percent a year after 1980. In the year to August 2009, China's output increased by 11.3 percent. (Source : World Economic Otulook and FT.com, septembre 14,2009). Answer the following questions according to this information: 7a) Distinguis between a rise in China's economic growth rate and a temporary cyclical expansion. 7b) How long, at the current growth rate, will it take for China to double its real GDP per person?. 7c) What happen to the real GDP per person in 2020?arrow_forwardQ4: Suppose an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. What is the growth rate of its real GDP? Assume that population was 100 in year 1 and 102 in year 2. What is the growth rate of GDP per capita?arrow_forwardDefine GDP growth in an economy.arrow_forward
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