Using the data from the appendix to this chapter, calculate

the following:
a. The infl ation rate in 1981 and 2007
b. The growth rate of real GDP in 1982 and 1984
c. The average infl ation rate from 1970 to 1980 and
from 2000 to 2007
d. The average growth rate of real GDP from 1929 to
2008
{ Hint : The formulas in the text give the technique for
calculating 1-year growth rates. Growth rates for multiple
years use the following formula:
where gt
(n) is the average annual growth rate of the variable
X for the n years between year ( t # n ) and year t .
For example, assume that the CPI in ( t # 2) is 100.0
while the CPI in year t is 106.09. Then the average rate
of infl ation is