Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Chapter 3, Problem 6E
To determine
Determine the actual annual growth rate.
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You are going to compare and contrast the GDP of the United States to that of another country of your choice for the last 3 years. Your report in narrative format should address the following questions:
Describe the current GDP growth rate of the two countries.
Which component of the GDP of the two countries changed the most for the last 3 years? Identify the possible causes of the changes.
Describe the biggest component of the GDP of the two countries.
What recommendations would you make in order to boost the GDP of the two countries?
Calculate the average annual growth rate using the information in the table below. Round to two decimal places.
Year
Growth rate
2017
3.2%
2018
2.7%
2019
0.5%
2020
1.8%
Use the data for the country of New Finlandia in the following table to calculate the following:
REAL GDP PER CAPITA
(2005 PRICES)
$41,603
YEAR
2010
2011
2012
42,933
42,416
2013
2014
43,311
43,246
(HINT: Remember from the previous chapter that the average annual growth rate for relatively short periods can be approximated by averaging the growth rates of those years.)
a. The percentage increase in real GDP per capita between 2010 and 2014 is %. (Enter your response rounded to two decimal places.)
b. The average annual growth rate in real GDP per capita between 2010 and 2014 is %. (Enter your response rounded to two decimal places.)
Chapter 3 Solutions
Macroeconomics (Fourth Edition)
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