01 Question 12 points) a See page 343 2nd attempt O See Hint Real per capita GDP
ID: 1160020 • Letter: 0
Question
01 Question 12 points) a See page 343 2nd attempt O See Hint Real per capita GDP in Singapore in 1957 was about $400, but it doubled to about $800.00 by 1978 a. What was the average annual economic growth rate in Singapore over the 21.00 years from 1957 to 1978? (NOTE: Round this to two places past the decimal point.) b. Per capita real GDP doubled in Singapore again in only seven years, reaching $1600.00 by 1985.00. What was the average annual economic growth rate between 1978 and 1985.00? (NOTE: Round this to two places past the decimal point.)Explanation / Answer
a. GDP growth rate over 21 years will be as follows :
Growth rate =[ (Final year's GDP- Initial Year's GDP)/ (Initial Year's GDP)]*100
Here, Final year's GDP =GDP of year 1978 i.e. $800
Initial year's GDP = GDP of year 1957 i.e. $400
Therefore, GDP growth rate =[(800-400)/400]*100
=[400/400]*100 =100%
Average annual growth rate = Growth rate /( final year - initial year)
Average annual growth rate = 100/(1978-1857)
=100/21=4.761%
(Round off to two decimal points i.e. 4.76%)
b.Similarly ,
GDP growth rate = [ (Final year's GDP- Initial Year's GDP)/ (Initial Year's GDP)]*100
Here,
Final year's GDP =GDP of year 1985 i.e.$1600
Initial year's GDP = GDP of year 1978 i.e.$800
GDP growth rate = [(1600-800)/800]*100
=[800/800]*100
=1*100
=100%
Annual grwoth rate = GDP growth rate / (Final year - Initial year)
=100/(1985-1978)
=100/7
=14.2857%
(Round off to two decimal points i.e. 14.29%)
HOPE THIS HELPS.
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