Refer to Exhibit 18-5

-Refer to Exhibit 18-5. Suppose that real GDP increased 3 percent from 2009 to 2010 and increased 5 percent from 2010 to 2011. What was the average increase in real GDP from 2009 to 2011?

Question

Refer to Exhibit 18-5

-Refer to Exhibit 18-5. Suppose that real GDP increased 3 percent from 2009 to 2010 and increased 5 percent from 2010 to 2011. What was the average increase in real GDP from 2009 to 2011?

Quizplus · Accepted Answer

The average increase in real GDP over two years is calculated by taking the sum of the annual growth rates and dividing by the number of years: (3% + 5%) / 2 = 4%.