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Which scenario would be described as comparing a large number to its past values? An economist calculates when the size of the economy will double given the current growth rate. A politician breaks down the new \( \$ 60 \) billion budget into what that will cost each person. An economist compares the nation's debt to the size of the economy. A lawmaker wants to fund a new park because GDP, and thus taxes, increased by \( 3 \% \) since last year.

Ask by Rojas Park. in the United States
Jan 19,2025

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Answer

A lawmaker wants to fund a new park because GDP and taxes increased by 3% since last year.

Solution

The scenario that best describes comparing a large number to its past values is: **A lawmaker wants to fund a new park because GDP, and thus taxes, increased by \( 3\% \) since last year.** **Explanation:** - **Comparing to Past Values:** This scenario involves analyzing the current GDP and tax revenue in relation to their values from the previous year. By noting that GDP has increased by \( 3\% \), the lawmaker is directly comparing the current figure to its past value to make a funding decision. - **Other Scenarios:** - *Economist calculating when the economy will double:* This is a projection based on current growth rates, not a direct comparison to past values. - *Politician breaking down the budget per person:* This involves dividing a large number by the population, not comparing to past data. - *Economist comparing debt to the size of the economy:* While this involves ratios, it doesn't explicitly state a comparison to past values. **Therefore, the fourth scenario is the most appropriate choice.** **Answer:** A lawmaker wants to fund a new park because GDP, and thus taxes, increased by 3 % since last year.

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The Deep Dive

In the scenario where a lawmaker wants to fund a new park because GDP increased by 3% since last year, you're witnessing an exciting process of economic comparison. It’s more than just numbers; it's analyzing how the economy evolves and what that means for community investments. The increase in GDP reflects the overall economic health and provides a solid foundation for making decisions like funding new parks, highlighting the pointed connections between economic growth and public funding opportunities. Now, let’s turn to the fascinating history of economic indicators like GDP. The concept of Gross Domestic Product was developed during the Great Depression in the 1930s by economists like Simon Kuznets. Initially created to provide better insight into economic performance, GDP has since become a vital metric globally. Understanding its historical significance can add depth to your appreciation of how economic strategies and policies have changed over time, often responding to past performance indicators just like the lawmaker's decision!

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