Question

Economists often are interested in percentage change from one period to the next. The percentage rate of change of gross domestic product​ (GDP) is an important macroeconomic variable. If in 2010 GDP was​ $11,150 billion​ dollars, and GDP increased to ​$11 comma 788 billion in​ 2011, what is the growth rate of the U.S. economy in​ 2011? nothing​%. ​(Enter your response rounded to one decimal​ place.)

Answer 1

Answer:

5,72%

Explanation:

To calculate the rate of change of GDP you need to adopt a base year of GDP, in this case the year 2010. So from 2010 GDP you can find the rate of change for GDP of 2011. The formula consists of the difference between current year GDP and base year GDP divided by base year GDP. After this calculation, simply multiply the value by 100 to find the percentage.

{(11,788 - 11,150) / 11,150} * 100 = 5.72%

Therefore, the GDP rate of change in 2011 was 5.72%.