If nominal GDP for 2009 is $6400 billion and real GDP for 2010 is $6720 billion (in 2005 dollars),then the growth rate of real GDP is
A)0%.
B)0)5%.
C)5%.
D)50%.

Question

Quizplus · Accepted Answer

To calculate the growth rate of real GDP, we need to use the formula:

Growth rate = ((Real GDP in current year - Real GDP in previous year) / Real GDP in previous year) x 100

Substituting the given values, we get:

Growth rate = ((6720 - 6400) / 6400) x 100 = 5%

Therefore, the correct answer is choice C) 5%.

If Nominal GDP for 2009 Is $6400 Billion and Real