$\begin{array}{c}
Year &GDP& GDP~ deflator& Ponulation \
\hline
2000 & \$ 400 \text { billion } & 100 & 50 \text { million } \
2001 & \$ 600 \text { billion } & 120 & 60 \text { million }
\end{array}$
-By what percent did real GDP rise between 2000 and 2001?

Question

$\begin{array}{c}
 Year &GDP& GDP~ deflator& Ponulation \
\hline
2000 & \$ 400 \text { billion } & 100 & 50 \text { million } \
2001 & \$ 600 \text { billion } & 120 & 60 \text { million }
\end{array}$
-By what percent did real GDP rise between 2000 and 2001?

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the GDP deflator and multiplying by 100. In 2000, real GDP was $400 billion / 100 * 100 = $400 billion. In 2001, real GDP was $600 billion / 120 * 100 = $500 billion. Therefore, real GDP rose by ($500 billion - $400 billion) / $400 billion * 100 = 25%.

-By What Percent Did Real GDP Rise Between 2000 and \text