answershomework1spring2007

answershomework1spring2007 - Economics 302 Spring 2007...

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Economics 302 Spring 2007 Answer Key: Homework 1 Collected February 6 1. a. Year Nominal GDP Consumption Gross Investment Government Purchases of Goods and Services Net Exports 1929 103.8 77.5 16.5 9.4 0.4 1933 56.4 45.9 1.7 8.7 0.1 1941 126.7 81 18.1 26.6 1 1945 223 119.9 10.8 93.2 -0.9 1947 244.5 162.3 35 36.4 10.8 1973 1385.5 852.5 244.5 287.9 0.6 2000 9872.9 6728.4 1767.5 1741 -364 b through e. C/Y I/Y G/Y NE/Y 1929 74.66% 15.90% 9.06% 0.39% 1933 81.38% 3.01% 15.43% 0.18% 1941 63.93% 14.29% 20.99% 0.79% 1945 53.77% 4.84% 41.79% -0.40% 1947 66.38% 14.31% 14.89% 4.42% 1973 61.53% 17.65% 20.78% 0.04% 2000 68.15% 17.90% 17.63% -3.69% 2. a and b. Year GDP Deflator Real GDP (in billions) CAGR over period 1947 15.5 1576.8 1973 31.3 4426.5 4.05% 2000 100 9872.9 3.02% c. Since a constant growth rate over time compounds, it would be meaningless to simply calculate the percent change in output over a period. The compound annual growth rate determines the rate at which a quantity would have had to
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This note was uploaded on 08/08/2008 for the course ECON 302 taught by Professor Gold during the Spring '07 term at Wisconsin.

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answershomework1spring2007 - Economics 302 Spring 2007...

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