If Italy's real GDP fell from $2.2 trillion one year to $1.9 trillion the next,the annual growth rate would be:

Question

Quizplus · Accepted Answer

The formula for annual growth rate is:

Annual Growth Rate = ((New GDP - Old GDP) / Old GDP) * 100

Substituting the values given in the question, we get:

Annual Growth Rate = ((1.9 trillion - 2.2 trillion) / 2.2 trillion) * 100
                   = (-0.3 trillion / 2.2 trillion) * 100
                   = -0.136 * 100
                   = -13.6%

Therefore, the correct answer is A) -13.6 percent.

If Italy's Real GDP Fell from $2