ZuoTi.Pro
Question

Explain to me how to calculate average annual growth rate please? In 1960Q3, real GDP per...

Explain to me how to calculate average annual growth rate please?

In 1960Q3, real GDP per capita was $17,223. In 2017Q3, real GDP was per capita $52,605. What was the average annual growth rate over this period?

A 1.93%

B 3.6%

C 5.3%

D 1.97%

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Solution:

Correct option is B. 3.6%.

From quarter 3 of 1960 to quarter 3 of 2017, there are 57 years. Over this time, the growth rate is:

Growth rate = (Final RGDP per capita - Initial RGDP per capita)*100/Initial RGDP per capita

Growth rate = ($52,605 - $17223)*100/17223

Growth rate = 35382*100/17223 = 205.43%

Average annual growth rate = Growth rate/number of years

Average annual growth rate = 205.43/57 = 3.604%

Thus, correct option is B) 3.6%

0 0
Add a comment
Know the answer?
Add Answer to:
Explain to me how to calculate average annual growth rate please? In 1960Q3, real GDP per...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Using the following data, calculate the annual growth rate of real GDP per person for China...

    Using the following data, calculate the annual growth rate of real GDP per person for China for the years in the table. Year Real GDP per Capita (in 1996 U.S. dollars) 2000 4,001 2001 4,389 2002 4,847 2003 5,321 2004 5,771 Calculate the annual growth rate of real GDP per person for China for the given years. Round your answer to the nearest tenth of a percent. Growth rate, 2001: % Growth rate, 2002: % Growth rate, 2003: % Growth...

  • Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate -...

    Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate - Inflation rate - Population growth rateThis equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when calculating this rate. However, the simplified equation both is easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The...

  • Reference equation: Real GDP per capita growth rate Nominal GDP per capita growth rate - Inflation...

    Reference equation: Real GDP per capita growth rate Nominal GDP per capita growth rate - Inflation rate - Population growth rate This equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when calculating this rate. However, the simplified equation both is easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The...

  • Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate-inflation rate-Population...

    Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate-inflation rate-Population growth rate This equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when caloulating this rate. However, the smplified equation is both easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The table below lists...

  • Calculate GDP per capita growth rate. Is there a big difference between GDP growth rate and...

    Calculate GDP per capita growth rate. Is there a big difference between GDP growth rate and GDP per capita growth rate? Can you offer some explanations why they stay approximately the same and why they change from the information you have? (hint: check the difference in terms of real GDP vs real GDP per capita) Identify whether the country has experienced business cycle changes in the past 10 years combined your information from GDP or GDP per capita growth rate,...

  • Solve for part B please. A) Real GDP per Capita in the US is currently $56,000...

    Solve for part B please. A) Real GDP per Capita in the US is currently $56,000 and grows at approximately 1.5% each year. Real GDP per Capita in China is currently $8,000 and grows at approximately 6.5% each year. If these growth rates continue, Real GDP per Capita for each country will be equal in how many years? Answer: 41 B) Refer to the previous problem where Real GDP per Capita for Nigeria fell between 2016 & 2017. During this...

  • According to the "Rule of 70", how many years will it take for real GDP per capita to double when the growth rate of re...

    According to the "Rule of 70", how many years will it take for real GDP per capita to double when the growth rate of real GDP per capita is 5%? A. less than 1 year B. 35 years C. 5 years D. 14 years

  • Using the following data on GDP per capita in the United Kingdom, compute the average annual...

    Using the following data on GDP per capita in the United Kingdom, compute the average annual growth rates during each of the 5 decades and the average annual growth rates over the 50 years 3. 6 points Using the following data on GDP per capita in the United Kingdom, compute the average annual growth rates during each of the 5 decades and the average annual growth rates over th 50 vears Year Real GDP per capita 1960 1970 1980 1990...

  • Suppose that real GDP per capita in the U.S. is $52,000.if the long-term growth rate of...

    Suppose that real GDP per capita in the U.S. is $52,000.if the long-term growth rate of real GDP per capita is 3.0% per year, how many years for real GDP per capita to reach $104,000?

  • 1. At an annual growth rate of 1.75% it will take _______ years for a country's GDP to double

    1. At an annual growth rate of 1.75% it will take _______  years for a country's GDP to double. If GDP starts at a value of $100 million, then in 200 years we would expect the value of GDP to be _______  times larger. 2. If nominal GDP is growing at 5% per year, the inflation rate is 2% per year, and population growth is-190 per year then real GDP per capita is growing at _______ percent per year. 3. A country...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT