If real GDP in 2013 is $10 trillion, and in 2014 real GDP is $9.5 trillion, then real GDP growth from 2013 to 2014 is ________.

Question

Quizplus · Accepted Answer

Real GDP growth is calculated as (new GDP - old GDP) / old GDP x 100%. Using this formula, we get (9.5 trillion - 10 trillion) / 10 trillion x 100% = -0.05 or -5%, indicating that real GDP actually decreased from 2013 to 2014. Therefore, the correct answer is D, -5 percent.

If Real GDP in 2013 Is $10 Trillion, and in 2014