Suppose that the annual rates of growth of real GDP of Econoland over a five-year period were sequentially as follows:

3 percent, 1 percent, −2 percent, 4 percent, and 5 percent.

What was the average of these growth rates in Econoland over these 5 years? What term would economists use to describe what happened in year 3? If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been the average growth rate? LO1