YEAR Real GDP Inflation 2000 PRICES rate CPI billion per ye

YEAR	Real GDP	Inflation
	2000 PRICES	rate (CPI)
	($ billion)	(%per year)

1980	5161.7	13.5
1981	5291.7	10.3
1982	5189.3	6.2
1983	5423.8	3.2
1984	5813.6	4.3
1998	9066.9	1.6
1999	9470.3	2.2


Using the data front Calculating growth Rates
Calculate:
a. The inflation rate in 1980 to 1981 and 1998 to 1999

b. The growth rate of real GAP IN 1981 to 1982 and 1983 to 1984

For (c) and (d) Use the average annual growth rate equation
here.

c. The average inflation rate from 1980 to 1981 and 1998 to 1999

d. The average growth rate of real GDP from 1981 to 1982 and 1983 to 1984

YEAR	Real GDP	Inflation
	2000 PRICES	rate (CPI)
	($ billion)	(%per year)

1980	5161.7	13.5
1981	5291.7	10.3
1982	5189.3	6.2
1983	5423.8	3.2
1984	5813.6	4.3
1998	9066.9	1.6
1999	9470.3	2.2


Using the data front Calculating growth Rates
Calculate:
a. The inflation rate in 1980 to 1981 and 1998 to 1999

b. The growth rate of real GAP IN 1981 to 1982 and 1983 to 1984

For (c) and (d) Use the average annual growth rate equation
here.

c. The average inflation rate from 1980 to 1981 and 1998 to 1999

d. The average growth rate of real GDP from 1981 to 1982 and 1983 to 1984

Growth rate in inflation rate from 1980 to 1981 = (10.3 – 13.5)/13.5 = -23.7%

Growth rate in inflation rate from 1998 to 1999 = (2.2 – 1.6)/1.6 = 37.5%

Growth rate in real GDP from 1981 to 1982 = (5189.3 – 5291.7)/5291.7 = -1.94%

Growth rate in real GDP from 1983 to 1984 = (5813.6-5423.8)/ 5423.8 = 7.19%

Average growth rate = (Growth rate in period 1 + growth rate in period 2)/no. of period

Here, data for 1980 and 1998 is insufficient to apply above formula.

Thus for present sent of data, result will be same as part (a).

Average growth rate = (Growth rate in period 1 + growth rate in period 2)/no. of period

Growth rate IN real GDP in 1981 = 2.518%

Growth rate in real GDP in 1982 = -1.935%

Thus, average growth rate in GDP from 1981 to 1982 = (2.518%+-1.935%)/2 = .2915%

Growth rate in real GDP in 1983 =4.518%

Growth rate in real GDP in 1984 = 7.186%

Thus, average growth rate in GDP from 1983 to 1984 = (4.518% + 7.186%)/2 = 5.85%