Principles of Economics Plus MyLab Economics with Pearson eText (2-semester access) -- Access Card Package (12th Edition)
Principles of Economics Plus MyLab Economics with Pearson eText (2-semester access) -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134426846
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
Question
Chapter 31, Problem 1.2P

Subpart (a):

To determine

Growth rate in real GDP from 2011 to 2012.

Subpart (a):

Expert Solution
Check Mark

Explanation of Solution

The growth rate in real GDP can be calculated using the following formula:

Growth rate in real GDP=[(Real GDPNewReal GDPOld)Real GDPOld]×100 (1)

Using the formula (1), the growth rate in real GDP from 2011 to 2012 of United States, El Salvador, Republic of South Africa, Cambodia, and Russia can be calculated as follows:

Growth rate in real GDP in U.S = (15,556.8615,20415,204)×100=2.32%

Real GDP growth rate in U.S. is 2.321%.

Table-1 shows the real GDP growth rate in different countries, which is obtained using Equation (1).

Table-1

CountryGrowth rate
U.S.2.32%
El Salvador1.87%
Republic of South Africa2.47%
Cambodia7.35%
Russia3.44%

Among these five countries, Cambodia experienced the highest rate of economic growth.

Economics Concept Introduction

Concept introduction:

Growth in real GDP: Growth in real GDP measures the changes of real GDP from one year to another year.

Sub part (b):

To determine

Growth rate in real GDP from 2012 to 2013.

Sub part (b):

Expert Solution
Check Mark

Explanation of Solution

Table-1 shows the real GDP growth rate from 2012 to 2013 in different countries, which is obtained using Equation (1).

Table -1

CountryGrowth rate
U.S.2.22%
El Salvador1.7%
Republic of South Africa1.89%
Cambodia7.47%
Russia0.25%

Among these five countries, Cambodia experienced the highest rate of economic growth from 2012 to2013.

Economics Concept Introduction

Concept introduction:

GDP growth rate: Growth rate of GDP measures the changes of GDP in one year to another year in an economy.

Subpart (c):

To determine

Growth rate in real GDP from 2013 to 2014.

Subpart (c):

Expert Solution
Check Mark

Explanation of Solution

Table-1 shows the real GDP growth rate from 2013 to 2014  in different countries, which is obtained using Equation (1).

Table -1

CountryGrowth rate
U.S.2.29%
El Salvador1.92%
Republic of South Africa2.62%
Cambodia7.38%
Russia1.67%

Among these five countries, Cambodia experienced the highest rate of economic growth from 2013 to2014.

Economics Concept Introduction

Concept introduction:

GDP growth rate: Growth rate of GDP measures the changes of GDP from one year to another year in an economy.

Sub part d):

To determine

Annual growth rate in real GDP from 2011 to 2014.

Sub part d):

Expert Solution
Check Mark

Explanation of Solution

The average annual growth rate in real GDP from 2011 to 2014 for U.S. can be calculated as the sum total growth rates divided by 3 as follows:

Annual growth rate of real GDP in U.S = (2.32%+2.22%+2.32%3)=2.29%

Annual growth rate of real GDP I U.S. is 2.29%.

The average annual growth rate in real GDP from 2011 to 2014 for El Salvador can be calculated as the sum of the total growth rates divided by 3 as follows:

Annual growth rate of real GDP in El Salvador = (1.87+1.70+2.203)=1.92%

Annual growth rate of real GDP in EL Salvador is 1.92%.

The average annual growth rate in real GDP from 2011 to 2014 for Republic of South Africa can be calculated as the sum of the total growth rates divided by 3 as follows:

Annual growth rate of real GDP in Republic of South Africa =(2.47%+1.89%+3.503) =2.62%

Annual growth rate of real GDP in Republic of South Africa is 2.62%.

The average annual growth rate in real GDP from 2011 to 2014 for Cambodia can be calculated as the sum of the total growth rates divided by 3 as follows:

Growth rate in real GDP in Cambodia =(7.35%+7.47%+7.31%3) =7.38%

Annual growth rate of real GDP in Cambodia is 7.38%.

The average annual growth rate in real GDP from 2011 to 2014 for Russia can be calculated as the sum total growth rates divided by 3 as follows:

Growth rate in real GDP in Russia =(3.44%+1.32%+0.25%3) =1.67%

Annual growth rate of real GDP in Russia is 1.67%.

Among these five countries, Cambodia experienced the highest average annual rate of economic growth from 2013 to2014.

Economics Concept Introduction

Concept introduction:

Annual GDP growth rate: Annual growth rate of GDP measures by dividing the total growth rate with the number of years.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
In 2018, according to the International Monetary Fund, India had the world’s 7th-highest nominal GDP, the 142nd-highest nominal GDP per capita, and the 7th-highest real GDP growth rate. What does each of these indicators tell us about the Indian economy and how life in India compares to life in other countries?      India has a huge economy that produces lots of goods and services (7th-highest nominal GDP), is still fairly poor (142nd-highest nominal GDP per capita), but has a rapidly increasing standard of living (7th-highest real GDP growth rate). India has a huge economy that produces lots of goods and services (142nd-highest nominal GDP per capita), is still fairly poor (7th-highest nominal GDP), but has a rapidly increasing standard of living (7th-highest real GDP growth rate). India has a huge economy that produces lots of goods and services (7th-highest nominal GDP), is still fairly poor (7th-highest real GDP growth rate), but has a rapidly increasing standard of…
Q)1 a) Canada​'s real GDP was 2,016 billion dollars in 2017 and 2,053 billion dollars in 2018. Canada​'s population growth rate in 2018 was 0.8 percent. Calculate Canada​'s economic growth rate and growth rate of real GDP per person in 2018. b) Calculate the approximate number of years it will take for real GDP per person to double if an economy maintains an economic growth rate of 12 percent a year and a population growth rate of 7 percent a year.
The following table reports real GDP per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real GDP per person in the Central African Republic was $1,010 in 1960, and it actually declined to $628 by 2010. The Central African Republic's average annual growth rate during this period was -0.95%, and it was the poorest economy in the table in the year 2010.   The real GDP-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies.

Chapter 31 Solutions

Principles of Economics Plus MyLab Economics with Pearson eText (2-semester access) -- Access Card Package (12th Edition)

Knowledge Booster
Similar questions
  • There are two countries in the world: Happytimes and Treehausland. Both countries currently have a GDP per capita of 1. Use the information in the table about growth and productivity to answer the questions. Round all numerical answers to two decimal places. Country Growth rate of GDP per capita Happytimes 0.086 Treehausland 0.031 What is GDP per capita in Happytimes in 21 years21 years ? Happytimes's GDP: $     What is GDP per capita in Treehausland in 21 years21 years ? Treehausland's GDP: $     In 21 years21 years , Happytimes grows how many times more than Treehausland? Happytimes's growth:   times Treehausland's growth
    Explain the data below and  Grenada gdp per capita for 2020 was $9,680, a 10.5% decline from 2019. Grenada gdp per capita for 2019 was $10,816, a 3.14% increase from 2018. Grenada gdp per capita for 2018 was $10,486, a 3.29% increase from 2017. Grenada gdp per capita for 2017 was $10,153, a 5.45% increase from 2016.
    Question 5 Investment in Country X increased from $4.445 million in 1998 to $4.909 million in 1999 at current market prices. In the same period, according to a government report, overall economic growth in Country X was 3.8%. (a) What is meant by investment? (b) In the first sentence of the article you will find the phrase ‘current market prices’. What does this mean? (c) Define what is meant by economic growth. (d) Explain the link between a rise in investment and a rise in economic growth. (e) Explain what benefits economic growth can bring to a country.
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • Economics: Private and Public Choice (MindTap Cou...
    Economics
    ISBN:9781305506725
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Macroeconomics: Private and Public Choice (MindTa...
    Economics
    ISBN:9781305506756
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Economics:
    Economics
    ISBN:9781285859460
    Author:BOYES, William
    Publisher:Cengage Learning
  • MACROECONOMICS FOR TODAY
    Economics
    ISBN:9781337613057
    Author:Tucker
    Publisher:CENGAGE L
    Economics For Today
    Economics
    ISBN:9781337613040
    Author:Tucker
    Publisher:Cengage Learning
    Micro Economics For Today
    Economics
    ISBN:9781337613064
    Author:Tucker, Irvin B.
    Publisher:Cengage,
  • Economics: Private and Public Choice (MindTap Cou...
    Economics
    ISBN:9781305506725
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Macroeconomics: Private and Public Choice (MindTa...
    Economics
    ISBN:9781305506756
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Economics:
    Economics
    ISBN:9781285859460
    Author:BOYES, William
    Publisher:Cengage Learning
    MACROECONOMICS FOR TODAY
    Economics
    ISBN:9781337613057
    Author:Tucker
    Publisher:CENGAGE L
    Economics For Today
    Economics
    ISBN:9781337613040
    Author:Tucker
    Publisher:Cengage Learning
    Micro Economics For Today
    Economics
    ISBN:9781337613064
    Author:Tucker, Irvin B.
    Publisher:Cengage,