Suppose that the annual rates of growth of real gdp of econoland over a five-year period were sequentially as follows: 3 percent
, 1 percent, ?2 percent, 4 percent, and 5 percent. what was the average of these growth rates in econoland over these 5 years? what term would economists use to describe what happened in year 3? if the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been the average growth rate? mcconnell (2014-01-09). macroeconomics (page 149). mcgraw-hill education. kindle edition.
The average growth rate would be (3+1-2+4+5)/5 = 2.2%
The decrease from 1% to -2% would be what they call, economic recession, when the economy of a country, for example, decreases probably due to calamities.
If it would have been +2%, then the average growth rate would be:
