Question

If GDP grew 3% in 1970, 2.2% in 1971 and 2.5% in 1972 then, what is the average annual growth rate over this period?

Select one:
a. 2.6%
b. -2.2%
c. 5%
d. 4%

If GDP grows at a rate of 3% per year, approximately how long will it take for GDP to double in size?

Select one:
a. 21 years
b. 12 years
c. 23 years
d. 35 years

Potential GDP is always greater than real GDP in an economy.

Select one:
True
False

If real GDP per capita in the United States is $8,000, what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?

Select one:
a. $10,560
b. $9,365
c. $9,280
d. $8,520

Answer 1

(1) If GDP grew 3% in 1970, 2.2% in 1971 and 2.5% in 1972 then, what is the average annual growth rate over this period?

Answer: a. 2.6%

(2) If GDP grows at a rate of 3% per year, approximately how long will it take for GDP to double in size?

Answer: c. 23 years

(3) Potential GDP is always greater than real GDP in an economy.

Answer : True

(4) If real GDP per capita in the United States is $8,000, what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?

Answer: b. $9,365