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 $11,934 billion in​ 2011, what is the growth rate of the U.S. economy in​ 2011? (Enter your response rounded to one decimal​ place.)

Answer 1

Growth rate of GDP from 2010 to 2011 = 7.0%

Step-by-step explanation:

The percentage rate of change (R.C) formula is:

R.C= ((Final value-Initial value)/ Initial value)*100

In this case the initial value corresponds to the GDP in 2010 and the final value corresponds to the GDP in 2011, if we apply the formula:

Rate of change (GDP) = (($11,934-$11,150)/ $11,150)*100

Rate of change (GDP) = 7.0%