Answer to Question #305655 in Macroeconomics for Prit

Question

Use the following data to answer the following questions

Year Real GDP per Capita (2012 Prices)

2013 $ 47719

2014 $48,116

2015 $48,822

2016 $49,184

2017 $50,010

a. What is the percentage change 2013 to 2017?

la

What is the average annual growth 2013 to 2017?

Answer 1

a) Percentage change = $\frac{(new - original)}{original }$

= $\frac{(50,010-47719)}{47719}$

= $\frac{2291}{47719}$

=0.0480

b) Average annual growth = $\frac{total GDP}{Number of years}$

= $\frac{(47719+48,116+48,822+49,184+50,010)}{5}$

= $\frac{243,851}{5}$

= $48,770.20