RQch9 - Suggested answers to selected Review Questions: (Ch...

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Suggested answers to selected Review Questions: (Ch 9) 1.5 There is no one correct answer to this question, but are some relevant considerations: An income of $1,000,000 represents 20 times more basic purchasing power than $50,000 in 2008, so one could have many more goods and services in 1900 than 2008. Even though there were no automatic dishwashers, microwaves, or airplanes in 1900, with $1,000,000 one could afford to have servants wash the dishes, cook, do the laundry, and provide other desired personal services. With an income of $1,000,000 in you could live what in many ways would be a more luxurious life than with an income of $50,000 today. So, the answer depends on one’s preference. 1.8 Growth rate for 2004 = 350000 350000 371000 x 100 = 6% Growth rate for 2005 = 371000 371000 411000 x 100 = 10.78% Growth rate for 2006 = 411000 411000 435000 x 100 = 5.84% Growth rate for 2007 = 435000 435000 465000 x 100 = 6.90% Average annual growth = 4 % 90 . 6 % 84 . 5 % 78
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RQch9 - Suggested answers to selected Review Questions: (Ch...

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