If real GDP grows by 3% in 2014,3.2% in 2017,and 2.5% in 2018,what is the average annual growth rate of real GDP?

Question

Quizplus · Accepted Answer

To find the average annual growth rate of real GDP, we need to calculate the average of the annual growth rates. 
Annual growth rate in 2014 = 3%
Annual growth rate in 2017 = 3.2%
Annual growth rate in 2018 = 2.5%

Now, to find the average annual growth rate, we use the formula:
Average annual growth rate = [(Growth rate in year 1 + Growth rate in year 2 + Growth rate in year 3)/3]

Plugging in the values, we get:
Average annual growth rate = [(3% + 3.2% + 2.5%)/3] = 2.9%
Therefore, the best choice is B) 2.9%.

If Real GDP Grows by 3% in 2014,3