If real GDP in year 1 is $72 million and real GDP in year 2 is $87 million,then the growth rate of real GDP is

Question

Quizplus · Accepted Answer

The growth rate of real GDP can be calculated using the following formula:

Growth rate = ((Year 2 Real GDP - Year 1 Real GDP) / Year 1 Real GDP) x 100

Plugging in the values, we get:

Growth rate = (($87 million - $72 million) / $72 million) x 100

Growth rate = ($15 million / $72 million) x 100

Growth rate = 20.8 percent

Therefore, the answer is C) 20.8 percent.

If Real GDP in Year 1 Is $72 Million and Real