Question

If the annualized GDP growth rates for four consecutive quarters are 2.0%, 0.9%, 0.8%, and 1.2%, estimate the growth rate for the year spanning those four quarters. Give your answer to the nearest tenth of a percent.

Answer 1

GDP Growth rate for the year = 4.9%

Explanation:

Since the quarters are the 4 months of the year, and we have given the GDP growth rate of consecutive four quarters.

That means, GDP Growth rate of first four months = 2.0%

GDP Growth rate of next four months = 0.9%

GDP Growth rate of next four months = 0.8%

GDP Growth rate of next four months = 1.2%

Thus, GDP Growth rate for the year = 2.0% + 0.9% + 0.8% + 1.2% = 4.9%

Answer 2

4.9%

Explanation:

GDP is the growth domestic product of a country over a chosen time period

When the GDP growth rate is reported quarterly , you add together the four quarters for the year to find the annual GDP growth rate.

Given the four consecutive quarters as; 2% , 0.9%, 0.8% and 1.2%

Growth rate for the year will be;

`=2+0.9+0.8+1.2=4.9`

4.9% is the annualized growth rate