If the U.S. government reports that GDP in the third quarter was $14 trillion at an annual rate, then the amount of income and expenditure during quarter three was $4 trillion.

Question

Quizplus · Accepted Answer

GDP reported at an annual rate means the quarterly GDP is multiplied by four to project an annual figure. Therefore, $14 trillion annually implies $3.5 trillion for the quarter.

If the US Government Reports That GDP in the Third Quarter Was