Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the following questions:
-What was the growth rate of real gross domestic product (GDP)from 2011 to 2012?
A) 2 percent
B) 1 percent
C) 10 percent
D) 20 percent
E) 5 percent

Question

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the following questions: 
-What was the growth rate of real gross domestic product (GDP)from 2011 to 2012?
A) 2 percent 
B) 1 percent 
C) 10 percent 
D) 20 percent 
E) 5 percent

Quizplus · Accepted Answer

To calculate the growth rate of real GDP, we need to use the real GDP values (adjusted for inflation). From the table, we can see that the real GDP in 2011 is $13,110 million and in 2012 it is $14,421 million. To calculate the growth rate, we use the formula:

Growth rate = (Real GDP in year 2 - Real GDP in year 1)/ Real GDP in year 1

Substituting the values, we get:

Growth rate = ($14,421 million - $13,110 million)/ $13,110 million
Growth rate = 10%

Therefore, the answer is C) 10 percent.

Consider the Following Data, Where Gross Domestic Product (GDP) Values