Intelligent economics NSers? (macro problem while studying)

VT_scratch

VT_scratch

Active member
hey guys, continuing studying for my macro economics final at UBC vancouver tomorrow, cant figure out this question. i thought i needed to use the growth formula but i just don't know what im doing. if anyone has time please give it a try and explain how you got the asnwer? much appreciated.

2. If real GDP in Canada grows at 4.0% per year, how many years will it take for it to triple?

A. about 12 years

B. about 20.5 years

C. about 28 years

D. about 38.5 years

E. it is impossible to tell without knowing population growth rate

like I said, I have the answer but just don't know how to get there!

thanks
 
i failed first year economics

i failed it so badly i had to switch programs and start afresh

ok thats only partly true. did i do lose interest because i failed, or did i fail because i lost interest

chicken or egg..

pointless story is pointless

when in doubt, go with c
 
thanks for the help. how about some more!

8. suppose an economy is experiencing an annual inflation rate of 80%. expressed as a monthly inflation rate, this works out to be?

A. 2.3%

B. 5.0% (correct answer, how do we get there?!)

C. 6.7%

D. 8.0%

E. im possible to tell

final tomorrow afternoon............... wooooo
 
Going by high school maths, Im guessing its something to do with compounding inflation.

ie. GDPx (1.05^12)

Could be wrong though.
 
same as the other problem. what class is this for?
x is the constant monthly inflation rate 12 is the exponent representing months in a year1.80 represents positive annual inflation of 80% (we're talking Zimbabwe here)
x^12=1.80
(1.05)^12 = 1.80
1.80=1.80
 
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