HW#7 Economic Growth Name__________ 7.2 points@

formula: (1.growth rate)^# of periods, example, 5% for 7 years is (1.05)^7=1.4

Rate 25 Ago 10 Ago 5 Ago Today 5 Ahead 10 Ahead 25 Ahead

#1 .01 7800 _a_ 9517 10003 10513 _b_ 12828

#2 .03 4800 7478 _a_ 10050 11651 13507 _b_

#3 .05 2960 _a_ 7854 10024 12793 _b_ 33944

#4 .09 1160 4225 _a_ 10003 _b_ 23680 86255

#5 Twenty-five years ago the richest economy, #_a_, had roughly _b_ times more than the poorest economy #_c_

#6 Ten years ago the richest economy had roughly _a_ times as much as the poorest

#7Twenty-five years forward the situation in question #5 is reversed. T/F

#8 Ten years ahead, the economy in #4 has more than all the others combined. T/F

Numeric answers: 1 2 4 7 6154 6501 8669 9056 11050 15391 16327 21043