Suppose that real GDP for 2017 was $10 000 billion and real GDP for 2018 was $9 500 billion. What is the rate of growth of real GDP?

Question

Quizplus · Accepted Answer

The rate of growth of real GDP can be calculated by taking the difference between the real GDP of the two years and dividing it by the initial year's GDP, multiplied by 100. Therefore, the rate of growth of real GDP in this case is: 
((Real GDP 2018 - Real GDP 2017)/Real GDP 2017) x 100 
= ((9,500 - 10,000)/10,000) x 100 
= (-500/10,000) x 100 
= -5% 
Thus, the answer is D, which represents a negative growth rate of 5%.

Suppose That Real GDP for 2017 Was $10 000 Billion