If nominal GDP for 2009 is $6400 billion and real GDP for 2010 is $6720 billion (in 2009 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 need to use the formula:
Growth rate of real GDP = ((Real GDP in 2010 - Real GDP in 2009)/Real GDP in 2009) x 100
Substituting the given values:
Growth Rate of Real GDP = ((6720 - 6400)/6400) x 100
= (320/6400) x 100
= 0.05 x 100
= 5%
Therefore, the correct answer is Choice C) 5%.

If Nominal GDP for 2009 Is $6400 Billion and Real