Given the GDP at the end of both 2004 and 2005, the growth rate of GDP for 2005 is calculated as: A) (GDP₂₀₀₅ - GDP₂₀₀₄) divided by GDP₂₀₀₅ × 100. B) (GDP₂₀₀₄ - GDP₂₀₀₅) divided by GDP₂₀₀₅ × 100. C) (GDP₂₀₀₅ - GDP₂₀₀₄) divided by GDP₂₀₀₄ × 100. D) (GDP₂₀₀₄ - GDP₂₀₀₅) divided by GDP₂₀₀₄ × 100.

Question

Quizplus · Accepted Answer

To calculate the growth rate of GDP for 2005, we need to find the change in GDP from 2004 to 2005 and express it as a percentage of the GDP in 2004. Therefore, we need to subtract the GDP at the end of 2004 from the GDP at the end of 2005 and divide the result by the GDP at the end of 2004 and then multiply by 100. So, the correct formula is (GDP₂₀₀₅ - GDP₂₀₀₄) divided by GDP₂₀₀₄ × 100. Thus, the correct choice is C.

Given the GDP at the End of Both 2004 and 2005