If real GDP grows by 3% in 2009,3.2% in 2010,and 2.5% in 2011,what is the average annual growth rate of real GDP?

Question

Quizplus · Accepted Answer

To find the average annual growth rate of real GDP over the three years, we need to calculate the total percentage increase over the period and divide by the number of years. 
The total percentage increase over the period can be found by first calculating the total increase, which is:
3% + 3.2% + 2.5% = 8.7%
Then, we divide by the number of years:
8.7% / 3 = 2.9%
Therefore, the average annual growth rate of real GDP is 2.9%, which corresponds to choice B.

If Real GDP Grows by 3% in 2009,3