If the government reports that "GDP has increased at an annual rate of 6.0 percent for the fourth quarter of 2015," by how much has GDP increased?
A) 6.0 percent during 2015
B) 24.0 percent during 2015
C) 6.0 percent during the fourth quarter of 2015
D) 1.5 percent during the fourth quarter of 2015

Question

Quizplus · Accepted Answer

The 6.0 percent is an annualized rate, meaning it is the rate at which GDP would grow if the quarterly growth continued for a full year. To find the actual quarterly growth, divide by 4, resulting in 1.5 percent for the fourth quarter.

If the Government Reports That "GDP Has Increased at an Annual