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© Hadi Salehi Esfahani
Quick Quiz 1!
•
Consider an economy that produces only two goods, bread
and butter. The following statistics are available about this
economy:
(a) 0.0%
(b) 2.3%
(c) 6.7%
(d) 10.0%
(e) 13.3%
1. Which one of the above numbers is the constantprice GDP
growth rate between 2010 and 2011?
2. Which one is the chainrule GDP growth rate between 2010
and 2011?
3. If population growth was 1% per year, what is the average
annual growth rate of chainrule GDP per capita during
20092011?
2009 (base year)
2010
2011
Quantity
Price
Quantity
Price
Quantity
Price
Bread
40
$1
50
$2
50
$1
Butter
60
$1
50
$1
60
$2
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Solution to Quick Quiz 1!
•
Consider an economy that produces only two goods, bread
and butter. The following statistics are available about this
(a) 0.0%
(b) 2.3%
(c) 6.7%
(d) 10.0%
(e) 13.3%
1. Which one is the 20102011 constantprice GDP growth
rate?
(d) 10.0%
2. Which one is the 20102011 chainrule GDP growth rate?
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This note was uploaded on 01/27/2012 for the course ECON 509 taught by Professor Villamil during the Fall '08 term at University of Illinois, Urbana Champaign.
 Fall '08
 Villamil

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