Question

In 1990, the GDP of Canada was $550 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 88 U.S. cents. In 2000, the GDP of Canada was $1070 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth 72 U.S. cents. By what percentage did the GDP of Canada increase from 1990 to 2000 in U.S. dollars?

Answer 1

Answer: 59.17%

Explanation:

Given that,

In 1990,

GDP of Canada = $550 billion measured in Canadian dollars

Exchange rate = $1 Canadian was worth 88 U.S. cents

In 2000,

GDP of Canada = $1070 billion as measured in Canadian dollars

Exchange rate = $1 Canadian was worth 72 U.S. cents

GDP in 1990( US$) = $550 × 0.88

                               = $484

GDP in 2000(US$) = $1070 × 0.72

                               = $770.4

Increase in GDP = GDP in 2000(US$) - GDP in 1990( US$)

                           = $770.4 - $484

                           = $286.4

Percentage increase in GDP = $\frac{Increase\ in\ GDP}{GDP\ in\ 1990(USD)} \times 100$

                                               = $\frac{286.4}{484} \times 100$

                                               = 59.17%

Answer 2

Answer:

By 59.17 % the GDP of Canada increase from 1990 to 2000 in U.S. dollars

Explanation:

For computing the increasing percentage, first we have to compute the GDP for the year 1990 and GDP for the year 2000

So, the GDP for the year 1990 = GDP of Canada × U.S cents

                                                  = $550 × 0.88

                                                  = $484

And, the GDP for the year 2000  = GDP of Canada × U.S cents

                                                  = $1070 × 0.72

                                                  = $770.4

Now, compute the increasing percentage which is computed below

= Difference of GDP amount ÷ 1990 GDP × 100

= 286.4 ÷ 484 × 100

= 59.17%

Hence, by 59.17 % the GDP of Canada increase from 1990 to 2000 in U.S. dollars