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If Real GDP Increased from $10 Billion to $11 Billion

Question 10

Multiple Choice

If real GDP increased from $10 billion to $11 billion from the first quarter of 2016 to the first quarter of 2017, but had increased by 4% from the fourth quarter of 2016 to the first quarter of 2017, the BEA would report first quarter of 2017 GDP growth as _____ using the year-over-year method and _____ using the annualized method.


A) 10%; 4%
B) 10%; 16%
C) 40%; 4%
D) 40%; 16%

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