Question

The following table shows data on a hypothetical country's real GDP from 1980 through 1988:

Year	Real GDP
	(Billions of Dollars)
1980	460
1981	475
1982	480
1983	490
1984	510
1985	515
1986	505
1987	500
1988	505

The green line on the following graph shows the economy's long-term growth trend.

Use the blue points (circle symbol) to plot the real GDP in each of the years listed. (Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) Next, place the black point (plus symbol) on the graph to indicate the point on the real GDP curve that definitely represents a peak. Finally, place the grey point (star symbol) on the graph to indicate the point on the real GDP curve that definitely represents a trough.

1981, 380

Calculate the percentage change in real GDP in each of the years shown. (Hint: The percentage change in real GDP equals the change in GDP from the previous year to the current year. For example, you can calculate the percentage change for 1981 by finding the change in GDP from 1980 to 1981, dividing this change by the level of GDP in 1980, and then multiplying the result by 100.)

Once you've calculated the percentage change for each of the years, use the orange points (square symbol) to plot your results on the following graph, rounded to the nearest percent. For each year, plot the percentage change from the year before. (Hint: For example, you should plot the growth rate from 1980 to 1981 with a horizontal coordinate of 1981.)

10-1-2-3-4-5ANNUAL CHANGE IN REAL GDP (Percent)YEAR

This economy experienced a contraction in the years                . On the first graph (showing real GDP), this contraction is seen as a period in which the level of real GDP             . On the second graph (showing annual change in real GDP), this contraction is seen as a period in which the growth rate of real GDP                .

True or False: This economy was experiencing an expansion in 1981.

True/ False

Answer 1

Answer :

D B с 1 2 3 4 Real GDP Growth Year ($ Rate(%) Billion) 1980 460 1981 475 3% 1982 480) 1% 1983 490 2% 1984 510 4% 1985 515 1% 1986) 505 -2% 1987 500 -1% 1988 505 1% 5 6 7 8 9 10

From graph shown below, the contraction is seen as a period when the level of Real GDP decreased.

Real GDP ($ Billion) 520 510 500 490 480 470 460 450 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

On graph shown below, the contraction is seen as a period when the growth rate of real GDP decreased.

Annual Change 0.05 0.04 0.03 0.02 0.01 0 -0.01 -0.02 -0.03 1980 1981 1982 1983 1984 1985 1986 1987 1988

In 1983, the business was experiencing a Expansion.

False.

Answer 2

2. Economic fluctuations and growth

The following table shows data on a hypothetical country's real GDP from 1980 through 1988:

Year	Real GDP
	(Billions of Dollars)
1980	372
1981	380
1982	384
1983	404
1984	400
1985	388
1986	392
1987	400
1988	404

The green line on the following graph shows the economy's long-term growth trend.

Use the blue points (circle symbol) to plot the real GDP in each of the years listed. (Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) Next, place the black point (plus symbol) on the graph to indicate the point on the real GDP curve that definitely represents a peak. Finally, place the grey point (star symbol) on the graph to indicate the point on the real GDP curve that definitely represents a trough.

Calculate the percentage change in real GDP in each of the years shown. (Hint: The percentage change in real GDP equals the change in GDP from the previous year to the current year. For example, you can calculate the percentage change for 1981 by finding the change in GDP from 1980 to 1981, dividing this change by the level of GDP in 1980, and then multiplying the result by 100.)

Once you've calculated the percentage change for each of the years, use the orange points (square symbol) to plot your results on the following graph, rounded to the nearest percent. For each year, plot the percentage change from the year before. (Hint: For example, you should plot the growth rate from 1980 to 1981 with a horizontal coordinate of 1981.)

This economy experienced a contraction in the years                . On the first graph (showing real GDP), this contraction is seen as a period in which the level of real GDP             . On the second graph (showing annual change in real GDP), this contraction is seen as a period in which the growth rate of real GDP                .

True or False: This economy was experiencing an expansion in 1981.

True/ False