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Unformatted text preview: two dates in time. Suppose that the value of GDP last year was Y L and the value of GDP in the current year is Y C . Then, the percentage change, or growth rate, of GDP is given by This formula is valid for calculating the percentage change in any statistic, not just the percentage change in GDP. A positive growth rate of GDP implies that the economy is expanding, while a negative growth rate of GDP implies that the economy is contracting. An expanding economy is said to be in a boom , while a contracting economy is said to be in a recession ....
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 Fall '10
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