For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Suppose that Year 2 is the base year. What is the growth rate of GDP?
A) 44.4%
B) 58%
C) 67.5%
D) 120%

Question

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Suppose that Year 2 is the base year. What is the growth rate of GDP?
A) 44.4% 
B) 58% 
C) 67.5% 
D) 120%

Quizplus · Accepted Answer

The growth rate of GDP is calculated as ((GDP in current year - GDP in base year) / GDP in base year) * 100%. Without specific GDP values for the years, we cannot calculate the exact growth rate, but based on the given options, 44.4% is the most reasonable choice for a typical GDP growth rate.

For the Following Questions, Suppose an Economy Produces Only Food