If real GDP rises from $700 billion to $704 billion,the economic growth rate is
A)($704 billion/$700 billion)/100.
B)($704 billion - $700 billion)/$700*100.
C)$700 billion/$704 billion.
D)($704 billion - $700 billion)/$704 billion.

Question

Quizplus · Accepted Answer

To calculate the economic growth rate, we need to find the percentage change in real GDP. Using the formula ((new value - old value) / old value) x 100, we can see that the growth rate is (($704 billion - $700 billion) / $700 billion) x 100 = 0.57%. Therefore, the best choice is B.

If Real GDP Rises from $700 Billion to $704 Billion,the