If nominal GDP for 2000 is $6400 billion and real GDP for 2001 is $6720 billion (in 2000 dollars),then the growth rate of real GDP is
A)0%.
B)0.5%.
C)5%.
D)50%.

Question

Quizplus · Accepted Answer

To calculate the growth rate of real GDP, we use the formula: (Real GDP in current year - Real GDP in previous year) / (Real GDP in previous year) x 100%. Plugging in the values, we get: (6720 - 6400) / 6400 x 100% = 5%. Therefore, the growth rate of real GDP is 5%.

If Nominal GDP for 2000 Is $6400 Billion and Real