Answer:
30%
Explanation:
GDP is the sum of all products and services produced by an economy over a given period of time. In an economy with only two products, GDP will be the sum of the quantity produced by each product at its given price.
Thus, the 2018 GDP will be:
Apples: 50,000 units x $ 1 (price) = $ 50,000
Tesla: 2 (Units) x $ 25,000 (Price) = $ 50,000
GDP 2018 = $ 50,000 + $ 50,000 = $ 100,000
The GDP variation between two years is calculated by adopting a year whose price will be the basis of the calculation, usually the first year chosen, in this case by 2018. Thus, after calculating the GDP of the base year (2018), the GDP of the The following year (2019) will be calculated using the base year price. In other words, let's calculate the 2019 GDP with the quantities sold in 2019, but with the 2018 prices. This is called the real GDP calculation, which really matters for comparison between two years.
<em>Note: Real GDP calculation is required to compare GDP developments between two or more periods. If the nominal GDP (price x quantity of each year) were calculated it would not be possible to compare properly, because in this case the effects of inflation would be infiltrated in the account. Through the calculation of real GDP inflation is isolated, as it uses the same price to calculate GDP each year, in this case the base year.</em>
Apples: 55,000 units x $ 1 (base price) = $ 55,000
Tesla: 3 (Units) x $ 25,000 (Base Price) = $ 75,000
GDP 2019 = $55000+ $75000 = $ 130,000
To calculate the percentage change in GDP simply calculate the difference between the two periods divided by the base year GDP (2018) and multiply by 100.
% GDP Change = (130,000-100,000) / (100,000) * 100 = (30,000 / 100,000) * 1000 = 0.3 * 100 = 30%
Therefore, the GDP percentage growth between 2018 and 2019 was 30%.
