If real GDP in country A is $500 billion one year and is $540 billion the following year, this means the growth rate for this country between the two years is:

Question

Quizplus · Accepted Answer

To calculate the growth rate, we need to use the formula: 
[(New GDP - Old GDP) / Old GDP] x 100%
= [(540 - 500) / 500] x 100%
= (40 / 500) x 100%
= 0.08 x 100% 
= 8% 
Therefore, the growth rate for this country between the two years is 8%.

If Real GDP in Country a Is $500 Billion One