1 to calculate average annual growth rate Which of the following is wrong with

# 1 to calculate average annual growth rate which of

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- 1 to calculate average annual growth rate. Which of the following is wrong with the use of this formula? 10 you don't subtract 1 the division should be 1 billion / 5 billion the exponent is incorrect ྋᏟ ྋᏟ ! The exponent should be 1/10 and not 10. 1 / 1 ړ ᳯ᷌ 11 If real GDP doubled in 10 years then you know that ___. the rate of inflation is about 7 percent the rate of economic growth is about 7 percent ྋᏟ ྋᏟ ! First, changes in real GDP measure economic growth, not inflation. Second, this is an application of the Rule of 70 as deals with GDP doubling. Recall the Rule of 70: 70/growth rate = approximate time to double. If real GDP doubled in 10 years, then the rate of economic growth would be 7 years as 70/7 = 10. the rate of inflation is about 10 percent
2019/12/23 下午 12(08 Long Run Growth I: Econ 104 , Sec. 3 , Fa19 8 ໚页（共 8 ໚页） the rate of economic growth is about 10 percent 1 / 1 ړ ᳯ᷌ 12 Say 50 years ago the CPI had a value of 70 and today's value is 260. Would (70/260) - 1 be the average rate of inflation over these years? 50 yes no ྋᏟ ! It would be (260/70) - 1 (and note that you'd multiply by 100 to make it a percent). (1/50)

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