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