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Unformatted text preview: Show all Work! b) If the annual rate of growth in real GDP remains the same as it was between 2001 and 2008, what will real GDP in Economia be in the year 2010? Show all work! 3) What was the annual rate of inflation in Economia between 2001 and 2008? Show all work! Determining rates of growth: Suppose a particular variable of interest has the value X t at time t, and X t+N at time t+N (N periods later). If we denote by ρ the perperiod growth rate in this variable X, we have: X t+N = X t (1 + ρ ) N If we wish to determine ρ we may rearrange this expression as: ρ = [X t+N /X t ] 1/N 1...
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This note was uploaded on 02/07/2012 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue.
 Fall '08
 RobertHoland
 Macroeconomics, Inflation

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