Suppose that real GDP for 2012 was $10,000 billion and real GDP for 2013 was $9,500 billion.What is the rate of growth of real GDP between 2012 and 2013?

Question

Quizplus · Accepted Answer

The rate of growth of real GDP is calculated using the formula: 
((GDP for current year - GDP for previous year) / GDP for previous year) x 100%

In this case, the calculation is:
(($9,500 billion - $10,000 billion) / $10,000 billion) x 100%
= -0.05 x 100%
= -5%

Therefore, the rate of growth of real GDP between 2012 and 2013 is -5%, which corresponds to choice B.

Suppose That Real GDP for 2012 Was $10,000 Billion and Real