Final answer:
The annual growth rate of China's real GDP, growing from $7 trillion to $8 trillion, is 14.3%, representing an increase in the country's economic output.
Step-by-step explanation:
To calculate the annual growth rate of China's real GDP, we can use the formula:
Growth rate = ((New GDP - Old GDP) / Old GDP) * 100%
Using the given values:
Growth rate = (($8 trillion - $7 trillion) / $7 trillion) * 100% = 14.3%
Therefore, the correct answer is C. 14.3%.
If China's real GDP grew from $7 trillion one year to $8 trillion the next, we calculate the annual growth rate by subtracting the previous year's GDP from the current year's GDP, dividing that number by the previous year's GDP, and then multiplying by 100 to get a percentage.
In this case, it would be (($8 trillion - $7 trillion) / $7 trillion) × 100. Therefore, the annual growth rate is (1 trillion / 7 trillion) × 100, which equals approximately 14.3%. This percentage represents the real increase in economic output without regard to inflation and is not the same as nominal GDP growth, which includes both real growth and inflation.