Question

Suppose that a country's annual growth rates over a 10-year period are as follows: year growth rate 1 5% 2 3 3 4 4 – 1 5 – 2 6 2 7 3 8 4 9 6 10 3 instructions: in part a, round your answer to 1 decimal place. in part b, enter your answers as whole numbers.

a. what was the country's trend rate of growth over this period?
b. which set of years most clearly demonstrates an expansionary phase of the business cycle?

Answer 1

a.) The country's trend rate of growth over this period was 4.2% = (2+3+3+4+4% 1+5% 2+6 +2+7+3+8+4+9+6+10+3/18)

b.)6-9 due to positive and increase.