A 2.5% annualized growth rate for real gross domestic product for the second quarter of 2013 translates into a 0.83% increase in real GDP from the first quarter to the second quarter of 2013.

Question

Quizplus · Accepted Answer

An annualized growth rate of 2.5% does not directly translate to a 0.83% increase from one quarter to the next. The annualized rate is a projection of growth over a year if the quarterly rate continues for four quarters, not the actual quarter-over-quarter growth rate.

A 25% Annualized Growth Rate for Real Gross Domestic Product for for the Second