In this section we looked at the growth rate formula for measuring the average annual growth rate of a variable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may be years apart. For example, in the worksheet you computed the average annual rate of inflation from 1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the same value as you do with the percentage change formula? Hint: Say that real GDP grew from $20.0 trillion one year to $20.4 trillion the next year. Do both the percentage change and the growth rate formulas give you the same answer? yes no

In this section we looked at the growth rate formula for measuring the average annual growth rate of a variable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may be years apart. For example, in the worksheet you computed the average annual rate of inflation from 1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the same value as you do with the percentage change formula? Hint: Say that real GDP grew from $20.0 trillion one year to $20.4 trillion the next year. Do both the percentage change and the growth rate formulas give you the same answer? yes no

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 3CQQ

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