If the government reports that "GDP has increased at an annual rate of 8.0 percent for the fourth quarter of 2019," by how much has GDP increased?
A) 8.0 percent during 2019
B) 32.0 percent during 2019
C) 8.0 percent during the fourth quarter of 2019
D) 2.0 percent during the fourth quarter of 2019

Question

Quizplus · Accepted Answer

An annual rate of 8.0 percent implies that if the growth rate continued for a full year, GDP would increase by 8.0 percent. For a single quarter, the increase is approximately 2.0 percent (8.0 percent divided by 4).

If the Government Reports That "GDP Has Increased at an Annual