If Italy's real GDP fell from $2.2 trillion one year to $1.9 trillion the next year, the annual growth rate would be:
A) −13.6 percent.
B) −15.8 percent.
C) −1.36 percent.
D) -1.58 percent.

Question

Quizplus · Accepted Answer

The annual growth rate is calculated by the formula [(New Value - Old Value) / Old Value] * 100. So, [(1.9 trillion - 2.2 trillion) / 2.2 trillion] * 100 = [-0.3 trillion / 2.2 trillion] * 100 = -13.6 percent.

If Italy's Real GDP Fell from $2