For the questions that follow, suppose a country has the following quarterly growth data for the last three years:

-The country's long-run average growth rate is 3%.In how many of these quarters did GDP contract?
A) two
B) six
C) five
D) four
E) three

Question

For the questions that follow, suppose a country has the following quarterly growth data for the last three years:
 
-The country's long-run average growth rate is 3%.In how many of these quarters did GDP contract?
A) two 
B) six 
C) five 
D) four 
E) three

Quizplus · Accepted Answer

The correct answer is A.The country's long-run average growth rate is 3%. This means that the GDP is expected to grow by 3% each year. However, the GDP can contract in some quarters. In this case, the GDP contracted in two quarters.

For the Questions That Follow, Suppose a Country Has the Following