Question

17) Real GDP in 2000 was $8.0 trillion and $8.5 trillion in 2001. What was the annual growth rate in percentage terms? 18) If GDP is $14.3 trillion, consumption is $10 trillion, and investment $1.6 trillion, what percent of GDP is consumption, and what percent is investment? 19) If the price at time t is $8 and the price at time t+1 is $9, by what percent did the price increase? 20) The inflation rate is the annual percentage growth of the price level (Consumer Price Index (CPT)). If the price level (CPI) is 120 in the year 2000 and the price level is 130 in 2001, then what was the annual inflation rate? 21) If the original sales of peanut M&Ms was 150 packs, and sales went up by 20%, how many additional packs of peanut M&Ms were sold? 22) Draw a graph of the function: y = 5 + 2x. What is the slope? What is the intercept? 23) Given the data points, (x, y) of a linear function: (2, 11). (4. 10). (6,9). (12, 6), what is the function? What is the slope? What is the intercept? 24) Putting price, P, on the vertical axis and quantity, Q. on the horizontal axis, graph the demand function: Q = 20 -0.5P. What is the slope? What is the intercept? 25) Taking the above demand function, Q = 20 -0.5P calculate the area of the triangle under the demand function, above the horizontal Q axis, and to the right of the vertical P axis. 26) If the US Dollar ($) - European Euro (€) exchange rates is $1.10 per Euro (€). C sweater costs 50 e, how much does the sweater cost in US Dollars? Show your work. a nd a
17-26

Answer 1

17.Calculation of annual growth in % term

Annual growth = Ending GDP - Beginning GDP / Beginning GDP

=8.5 -8 / 8

=.5/8

=6.25%