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nyah95 nyah95
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A year ago
Scenario: In 2019, Newland had a real GDP of about USD 100,000,000. During this time, Newland's long-run trend growth in real GDP was 3% per year. In 2020, as a result of the Coronavirus Pandemic, it suffered a 15% contraction in real GDP. Following 2020, Newland experiences catch up growth and returns to the trend level of GDP in 2025 and then goes back to growing at 3% per year (i.e., the Pandemic does not change its trend GDP).

What must have Newland's average rate of growth in real GDP (compound annual growth rate) have been between 2020 and 2025? (Hint: you may want to first calculate what Newland's real GDP would have been in 2025 if there had been no pandemic.)

▸ 5.21%

▸ 7.03%

▸ 10.46%

▸ 3%
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Macroeconomics

Macroeconomics


Edition: 3rd
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satish1015satish1015
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nyah95 Author
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A year ago
Good timing, thanks!
Lourd Jenkins
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Yesterday
This site is awesome
deathDoUsPart
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2 hours ago
You make an excellent tutor!
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