If nominal GDP in 2007 is $5.43 (in trillions) and in 2008 the level of nominal GDP rises to $6.11 (in trillions), what is the growth rate of nominal GDP?
A) -11.1%
B) -12.5%
C) 11.1%
D) 12.5%

Question

Quizplus · Accepted Answer

To calculate the growth rate of nominal GDP, we use the formula: ((new GDP - old GDP) / old GDP) x 100.
Plugging in the numbers, we get ((6.11 - 5.43) / 5.43) x 100 = 12.5%. Therefore, the growth rate of nominal GDP is 12.5% between 2007 and 2008. 
The correct answer choice is D.

If Nominal GDP in 2007 Is $5