Suppose an economy’s real GDP is $700 billion in year 1 and $718 billion in year 2. What is the growth rate of its GDP?
What will be an ideal response?
[($700 ? $718)/($700)] = .0257. In percentage terms, the growth rate is 2.57%.
Economics
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An increase in income (all else equal) will ALWAYS lead to a parallel shift of the budget line
Indicate whether the statement is true or false
Economics
Curly is offered the following gamble: a 25 percent chance of winning $1,500 and a 75 percent chance of losing $500. This is a(n):
A. fair gamble. B. unfair gamble. C. better-than-fair gamble. D. almost-fair gamble.
Economics