$\begin{array}{l}
\begin{array} { l l }
\text { Year } & \text { Real GDP } \
1 & \$ 400 \text { million } \
2 & \$ 425 \text { million }
\end{array}\
\text { Table } 17.2
\end{array}$ Refer to Table 17.2.From year 1 to year 2,real GDP grew at a rate of
A)6.25 percent.
B)25 percent.
C)1.5 percent.
D)5.9 percent.

Question

$\begin{array}{l}
\begin{array} { l l } 
\text { Year } & \text { Real GDP } \
1 & \$ 400 \text { million } \
2 & \$ 425 \text { million }
\end{array}\
\text { Table } 17.2
\end{array}$ Refer to Table 17.2.From year 1 to year 2,real GDP grew at a rate of
A)6.25 percent.
B)25 percent.
C)1.5 percent.
D)5.9 percent.

Quizplus · Accepted Answer

The growth rate of real GDP is calculated as $\frac{\text{GDP in Year 2} - \text{GDP in Year 1}}{\text{GDP in Year 1}} \times 100$. Substituting the given values: $\frac{425 - 400}{400} \times 100 = 6.25\%$.