Compute the economy growth rate

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This question refers to Table A. The country in question has based its economic growth on population growth -which includes immigration. Population increased from 20 million people (in the year 2010) to 30 million people (in 2020). The rate of inflation during the ten-year period has been zero (0) so that nominal GDP and real GDP are identical. The real wage remained constant during the ten-year period. The Gini ratio increased from 0.40 to 0.90. This is all the information available.

Items

Year 2010 Amount ($ billion)

Year 2020 Amount ($ billion)

Household Consumption

9.0

18.0

Gross Private domestic Investment

3.0

6.0

Total Government Spending

4.0

8.0

Exports

7.0

14.0

Imports

5.0

10.0

Gross Domestic Product (GDP)

?

?

Table A

  1. Compute GDP for 2010 and 2020.
  2. Compute the economy's growth rate.
  3. Did the standard of living improve? Explain carefully (it is not a "yes or no" question).
  4. Did the country experience "inclusive growth"? Explain carefully (it is not a "yes or no" question).

Reference no: EM133203111

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