Read the article and answer the questions in the spaces below. Use full sentences and show working but do not use more space than is given here.Marks are shown and total.
(1)Suppose that an economy had contracted by 11.2%, as the article says the economy of Ireland did in the GFC. Show that it would take nearly 10 years for such an economy to recover if it could only manage the annualised growth rate of the Euro Zone given in the article.
(2) The article claims that “GDP per person remains below its peak yet GDP has surpassed its previous peak … although GDP surpassed the pre-crisis high a year ago.” Carefully defining the terms that you use, explain how this can be so.
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