ATAR Notes: Forum

Uni Stuff => Universities - Victoria => University of Melbourne => Topic started by: Deleted User on August 17, 2013, 04:08:42 pm

Title: Macroeconomics Help!
Post by: Deleted User on August 17, 2013, 04:08:42 pm

Hi guys. If I'm given an annualised real GDP growth figure, how do I convert that figure into a quarterly real GDP growth figure?

Eg. If annualised real GDP decreased by 1.4% for the quarter, what is that in terms of quarterly growth?

Thanks.

Title: Re: Macroeconomics Help!
Post by: chasej on August 18, 2013, 02:08:23 pm

Quote from: Deleted User on August 17, 2013, 04:08:42 pm

Hi guys. If I'm given an annualised real GDP growth figure, how do I convert that figure into a quarterly real GDP growth figure?

Eg. If annualised real GDP decreased by 1.4% for the quarter, what is that in terms of quarterly growth?

Thanks.

The annualized rate is simply a rate from one month converted to make it a year on year rate. This is usually done by multiplying a quaterly  rate by 4. Quite inaccurate as it takes into account changes from only one month. Therefore to convert a annualized rate to a quarterly rate you need to divide by 4 the annualized rate.

Using your example -1.4/4=quarterly rate.

Title: Re: Macroeconomics Help!
Post by: clueless123 on August 18, 2013, 02:21:49 pm

I'm not sure if this is your question; but to change an annualized growth figure to a quarterly figure, you use the formula:
(1+annualized growth)^1/4   - 1

Title: Re: Macroeconomics Help!
Post by: Hancock on August 18, 2013, 06:51:05 pm

Did people get 1.6% for the GDP of 2012-2013 March Quarter USA? These tables are screwing with me hard.