Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Chapter 6, Problem 4NP
To determine
To know: The reason for faster growth rate of countries.
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Students have asked these similar questions
India’s GDP per capita increased from $310 in 1991 to $1,489 in 2012.
(i) Calculate the average annual rate of growth of the Indian economy during this period using the arithmetic average.
(ii) Calculate the geometric average annual growth rate of India during this period. Explain why the number you find in (ii) differs from the result obtained in (i).
10.5
Linear trend (y)
10.0
Log of GDP per capita
95
y = 0.0214x+ 8.7782
R = 0.9889
9.0
8.5
Year
This shows log GDP per capita for the UK Which of the following statements are correct?
Select one or more:
a. The graph shows that in 1950 UK GDP per capita was about £8.75.
Ob.
The trend growth rate over the period was 0.9889% per annum.
When actual output is below trend output the economy is in recession.
U d. The trend growth rate over the period was 2.14 % per annum.
Log of GDP per capita
1950
1955-
-096
1995-
-000,
2005
A country's growth rate (the percentage change in output) between 2000 and 2002
was 11%, and the growth rate between 2000 and 2001 was 7%, what was the
country's growth rate between 2001 and 20027 Solve the problem by first
formulating an equation(s).
Please, enter the answer in (with two decimal points) and UPLOAD your work and
final answer in the next question.
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