Question: This is my homework... I need help with the last part where it asks: Is the economy expanding equally each year? Why or why not?

This is my homework...

I need help with the last part where it asks: Is the economy expanding equally each year? Why or why not?

my question is how do i answer that. How do i know its expanding equally each year? what do they mean by equally? the same each year?

I've done the calculations for the question below...

a)GDP = (average level of prices) (Quantity of Output)

GDP for year 2000

= 15 x 950

= 14,250

GDP for year 2010

= 20 x 850

= 17,000

GDP for year 2020

= 25 x 1,500

= 37,500

b)Price index = Nominal GDP current year / Nominal GDP base year (2010) x 100

Price index for year 2000

= 14,250/17,000 x 100

= 83.82

Price index for year 2010

= 17,000/17,000 x100

= 100

Price index for year 2020

= 37,500/17,000 x 100

= 220.58

c)REAL GDP = Nominal GDP / Price Index x 100

GDP for year 2000

= 14,250/83.82 x 100

= 17,000.71

GDP for year 2010

= 17,000 / 100 x 100

= 17,000

GDP for year 2020

= 37,500 / 220.58 x 100

= 17000.63

GROWTH RATE: present - past / past x 100

For 2000 to 2010

= 100 - 83.82/83.82 x 100

= 19.30 %

For 2010 to 2020

= 220.58 - 100 / 100 x 100

= 120.58 %

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