Question

Janet wants to calculate the real growth rate for the US between 2010 and 2011. She has the follow information: real GDP in 2010 = 15 trillion dollars, real GDP in 2011 = 15.5 trillion dollars. Based on this information, the growth rate between 2010 and 2011 is_______________

Answer 1

Answer:

The answer is 3.3%

Explanation:

Percentage growth rate is

New figure - Old figure /old figure x 100%

Real GDP in 2011 is $15.5 trillion

Real GDP in 2010 is $15 trillion

So we have $15.5 - $15/$15 x 100%

$0.5/$15 x 100%

0.033 x 100%

3.3% is the growth rate between 2011 and 2010.

Alternatively, new figure - old figure - 1

$15.5/15 - 1

1.033 - 1

0.033

Expressed as a percentage

0.033 x 100%

3.3%