The Indicator from Planet Money reported that GDP fell by 32.9% in the second quarter of...

The Indicator from Planet Money reported that GDP fell by 32.9% in the second quarter of 2020. Wha† value from the GDP calculations are they using to measure the growth rate? Did the economy really shrink by 32.9
% in 3 months? Explain.

Expert Solution

The annualized GDP growth rate is a measure of the increase or decrease of the GDP from one year to the next. Understanding this measurement is a way of knowing whether the general economy is getting better, worse or staying stable over time. The gross domestic product from April to June did plunge 32.9% but it did so on an annualized basis which means that it fell 32.9 percent as compared to the same quarter last year.From an actual contractionary perspective, the Q2 decline in GDP was somehwhere close to 1.8%.

Rahul Sunny answered 2 years ago

If the change in GDP in South Korea from 2016 Quarter 3 to 2016 Quarter 4...

If the change in GDP in South Korea from 2016 Quarter 3 to 2016 Quarter 4 was 6%, then we may conclude that the s.a.a.r for GDP in the same period was 1.6%, because s.a.r. measures quarter-to-quarter growth 3.2%, because s.a.a.r. measures the upper limit of current GDP growth One-fourth of 1.6%, or 0.4%, because s.a.a.r. removes all annualized data Four times 1.6%, or 6.4%, because s.a.a.r. annualizes quarterly data The difference between an economic indicator being a flow variable...

From 1959 to the Financial Crisis (2007-2009), the ratio of M1 to GDP (income) fell by...

From 1959 to the Financial Crisis (2007-2009), the ratio of M1 to GDP (income) fell by abouttwo-thirds from about .27 to .09. Briefly explain one possible reason why M1/GDP declined so muchduring this time. Be sure to use macroeconomic ideas (e.g., Mankiw textbook, class materials, or otherreliable sources). NOTE: There is more than one acceptable answer.

In July 2020, Delta Air Lines reported earnings for the second quarter of 2020. Delta’s CEO...

In July 2020, Delta Air Lines reported earnings for the second quarter of 2020. Delta’s CEO Ed Bastian stated “[d]emand has stalled as the virus has grown...coupled with the quarantine measures”. Delta’s posted a $5.7 billion net loss in the second quarter. Which of the following is correct? A. Delta's accounting profit is -$5.7 billion with a lower economic profit. B. Delta's accounting profit is -$5.7 billion with a higher economic profit. C. Delta's economic profit is -$5.7 billion with...

The father of Mr. Spock, second officer of the Starship Enterprise, came from the planet Vulcan;...

The father of Mr. Spock, second officer of the Starship Enterprise, came from the planet Vulcan; his mother came from the Earth. A Vulcan is homozygous for the genes for pointed ears (P), adrenals absent (A), and a right-sided heart (R). All three genes are dominant over their respective Earth alleles (p, a, and r). These three genes are autosomal and are linked as shown in this linkage map: P(p)-----------15 map units-----------A(a)---------------20 map units-------------R(r) If Mr. Spock marries a phenotypically...

Here are some important figures from the budget of Cornell, Inc., for the second quarter of...

Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2017 April May June Credit sales $ 324,000 $ 304,000 $ 364,000 Credit purchases 132,000 155,000 180,000 Cash disbursements Wages, taxes, and expenses 44, 400 11,900 63,400 Interest 11,400 11,400 11,400 Equipment purchases 84,000 158,000 0 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale,...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2015: April May June Credit sales $ 317,000 $ 297,000 $ 357,000 Credit purchases 125,000 148,000 173,000 Cash disbursements Wages, taxes, and expenses 43,700 11,200 62,700 Interest 10,700 10,700 10,700 Equipment purchases 77,000 144,000 0 The company predicts that 5 percent of its credit sales will never be collected, 25 percent of its sales will be collected in the month of the sale,...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2018: April May June Credit sales $ 315,000 $ 295,000 $ 355,000 Credit purchases 123,000 146,000 171,000 Cash disbursements Wages, taxes, and expenses 43,500 11,000 62,500 Interest 10,500 10,500 10,500 Equipment purchases 75,000 140,000 0 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale,...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2015: April May June Credit sales $ 311,000 $ 291,000 $ 351,000 Credit purchases 119,000 142,000 167,000 Cash disbursements Wages, taxes, and expenses 43,100 10,600 62,100 Interest 10,100 10,100 10,100 Equipment purchases 71,000 132,000 0 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale,...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2002 April May June Credit Sales $330,000 $372,000 $432,000 Credit purchases 132,000 150,000 185,000 Cash disbursements Wages, taxes, and expenses 20,400 22,200 25,200 Interest 9,600 9,600 9,600 Equipment purchases 70,000 84,000 0 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the...

You inherited money from a deceased relative. You are entitled to receive $1,463 every quarter for...

You inherited money from a deceased relative. You are entitled to receive $1,463 every quarter for the next ten years. If you could invest right now, you would be able to earn 5%, compounded quarterly. How much is this inheritance worth to you?

Question

The Indicator from Planet Money reported that GDP fell by 32.9% in the second quarter of...

Solutions

Expert Solution

Related Solutions

If the change in GDP in South Korea from 2016 Quarter 3 to 2016 Quarter 4...

From 1959 to the Financial Crisis (2007-2009), the ratio of M1 to GDP (income) fell by...

In July 2020, Delta Air Lines reported earnings for the second quarter of 2020. Delta’s CEO...

The father of Mr. Spock, second officer of the Starship Enterprise, came from the planet Vulcan;...

Here are some important figures from the budget of Cornell, Inc., for the second quarter of...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

You inherited money from a deceased relative. You are entitled to receive $1,463 every quarter for...