Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1. (20 points) The following table shows you the annual real GDP growth rate (%) of the United States over recent ve years. Use

image text in transcribed
image text in transcribed
Question 1. (20 points) The following table shows you the annual real GDP growth rate (%) of the United States over recent ve years. Use the information from the table and nish the following question. 2017 2018 2019 2020 2021 2.33% 3.00% 2.16% -3.50% Source: US. Bureau of Economic Analysis (1) Use yearly GDP growth rate and calculate the ve-year average growth rate of the US. (2) Due to the Covid-19 pandemics, the US national output (GDP) has shrunk 3.5 percent in 2020. It is reasonable that economists could treat this year as an outlier because this change was largely caused by an unprecedented health crisis. Now use GDP from 2016 to 2019 to calculate 4-year average GDP growth rate. We have 2016 GDP growth rate equals 1.71%. How much is the average yearly growth rate? (3) Based on the average 5-year growth rate (2017-2021), how long it takes to double US GDP using the Rule of 70'? (4) For country B, its GDP is now about 60 percent of the US GDP. You are trying to forecast GDP of this country relative to the US in 10 years. The US GDP growth rate is about 1.75 percent in the next 10 years. And GDP growth rate country B is about 4.5 percent. Then how much GDP of country will be relative to the US GDP after 10 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Macroeconomics

Authors: Robert C. Feenstra, Alan M. Taylor

Fourth Edition

1319061729, 978-1319061722

More Books

Students also viewed these Economics questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago