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Intelligent economics NSers? (macro problem while studying)

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VT_scratch
Posts: 8785 - Karma: 6,242
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
Dec 15 2010 7:30PM
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Gorilla.Steeze
Posts: 2215 - Karma: 43
c. about 28 years.
Dec 15 2010 7:34PM
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Emma_Watson
Posts: 4491 - Karma: 6,796
F. All of the above.

Dec 15 2010 7:36PM
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Anathema
Posts: 21048 - Karma: 5,061

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

Dec 15 2010 7:37PM
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Gorilla.Steeze
Posts: 2215 - Karma: 43
1 -> 3 = 100 -> 300

100 x 1.04^(28) = 299.87033191
Dec 15 2010 7:37PM
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Squid.
Posts: 1904 - Karma: 23
F. Never. Canada sucks so GDP will never grow


/troll
Dec 15 2010 7:53PM
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panojibber
Posts: 3382 - Karma: 216
Should've texted me man! We did stuff like this in math.
Dec 15 2010 7:58PM
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little1337
Posts: 8241 - Karma: 47,862
sorry me not yes math man
Dec 15 2010 9:30PM
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VT_scratch
Posts: 8785 - Karma: 6,242
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
Dec 16 2010 2:37AM
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icon1234
Posts: 3081 - Karma: 1,475
Are there no formulas in your book? Most of this stuff is trivial just plug and chuck.
Dec 16 2010 2:41AM
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LIL_WAT
Posts: 1900 - Karma: 475

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

ie. GDPx (1.05^12)

Could be wrong though.

Dec 16 2010 2:43AM
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0ptions
Posts: 2198 - Karma: 60
This, throw me some formulas and I might be able to help.
Dec 16 2010 3:03AM
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Gorilla.Steeze
Posts: 2215 - Karma: 43
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 year
1.80 represents positive annual inflation of 80% (we're talking Zimbabwe here)

x^12=1.80

(1.05)^12 = 1.80

1.80=1.80
Dec 16 2010 3:11AM
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