All three central banks target inflation. Cragistan appears to have a higher actual GDP growth rate than a potential GDP growth rate. To calculate the actual GDP growth rate input the following: PV = -50, FV = 82, N = 10 and solve for I/Y. The actual GDP growth rate is 5.1%; the potential GDP growth rate is given as 4.4%. Inflation is potentially a problem. Kurtenstein’s and West Lundia’s estimated actual GDP growth rates do not exceed their potential growth rates. |
