Table 14-1
$\begin{array}{|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Real GDP (billions } \
\text { of } 2000 \text { dollars) }
\end{array} \
\hline 2015 & \$ 8,700 \
\hline 2016 & 8,875 \
\hline 2017 & 9,000 \
\hline 2018 & 9,280 \
\hline
\end{array}$
-Refer to Table 14-1.Using the table above,what is the approximate average annual growth rate from 2015 to 2018?

Question

Table 14-1
 $\begin{array}{|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Real GDP (billions } \
\text { of } 2000 \text { dollars) }
\end{array} \
\hline 2015 & \$ 8,700 \
\hline 2016 & 8,875 \
\hline 2017 & 9,000 \
\hline 2018 & 9,280 \
\hline
\end{array}$
-Refer to Table 14-1.Using the table above,what is the approximate average annual growth rate from 2015 to 2018?

Quizplus · Accepted Answer

To find the average annual growth rate, we can use the formula:
[(final value/initial value)^(1/number of years)] - 1

Using this formula, we get:
[(9280/8700)^(1/3)] - 1 = 0.02 or 2%

Therefore, the answer is choice C.

Table 14-1 -Refer to Table 14-1