Unit One: Overview | Introducing Growth & GDP | Per Capita Income | Distribution of Income | Growth & Policy

Answers: Compare National Economic Performance as Reflected in GDP Growth

Caclulate the absolute growth in GDP and the rate of growth for each of these countries. Write out a sentence expressing the rate of GDP growth for each, and then answer the questions below.

Absolute GDP Growth
(\$US billions):
1991-1999
Rate of GDP Growth:
1991- 1999
Brazil   109.4  23%
Chile     21.5  66%
China   499.5118%
Mexico     61.9   23%
Sweden     33.4   15%
Tanzania       0.7   16%
United States 1902.8   33%

"Between 1991 and 1999, Chile's GDP grew 66 percent."
"GDP in China grew 118 percent between 1991 and 1999." or "GDP in China more than doubled between 1991 and 1999."
"During the 1990s, Mexico's GDP grew 23 percent."
"By 1999, Sweden's GDP had grown 15% larger than it was in 1991."
"Tanzania's GDP grew 16 percent from 1991 to 1999."
"The US economy, as measured by GDP, was a third larger in 1999 than it was in 1991."

1. Which nation had the strongest rate of GDP growth between 1991 and 1999?

The nation showing the strongest rate of growth is Mexico, at 118%.

2. Which nation had the largest absolute growth in GDP between 1991 and 1999?

The nation showing the largest absolute growth from 1991 to 1999 is the United States, at 1.902 trillion dollars.

3. Could growth rate ever be a negative number? How could this happen? What would a negative "growth rate" mean?

Yes, growth rate could be a negative number if goods and services produced have less total value one year than they did in a prior year. This could happen if, for example, a war destroyed factories or killed many workers or farmers so that less product was created in the economy. A negative growth rate means that the economy is shrinking -- less wealth is available than before for investment, social spending or individual consumption.

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Unit One: Overview | Introducing Growth & GDP | Per Capita Income | Distribution of Income | Growth & Policy