Question

Assuming Year 1 is the base year. The real GDP is 200 for year 1, and 210 for year 2. The nominal GDP is 200 for year 1, and 220 for year 2. Between Year 1 and Year 2, the growth rate of nominal GDP is _________. (Calculate the growth rate)

Answer 1

The growth rate of nominal GDP between Year 1 and Year 2 is 10%, calculated by taking the difference of the nominal GDPs for the two years, dividing by the nominal GDP of Year 1, and then multiplying by 100.

Step-by-step explanation:

The growth rate of nominal GDP from Year 1 to Year 2 can be calculated using the formula:
Growth Rate = ((Nominal GDP in Year 2 - Nominal GDP in Year 1) / Nominal GDP in Year 1) × 100

Given that Nominal GDP for Year 1 is 200 and for Year 2 is 220, we plug the values into the formula to get:
Growth Rate = ((220 - 200) / 200) × 100

This simplifies to:
Growth Rate = (20 / 200) × 100
Growth Rate = 10%

Therefore, the growth rate of nominal GDP between Year 1 and Year 2 is 10%.

Answer 2

The growth rate of nominal GDP between Year 1 and Year 2 is 10%, calculated by the change in nominal GDP from Year 1 to Year 2 divided by the nominal GDP of Year 1, and then multiplied by 100%.

Step-by-step explanation:

The question asks us to determine the growth rate of nominal GDP between Year 1 and Year 2. The nominal GDP for Year 1 is 200, and for Year 2 it is 220. To calculate the growth rate, we can use the formula:

Growth Rate = ((Nominal GDP in Year 2 - Nominal GDP in Year 1) / Nominal GDP in Year 1) × 100%

Plugging in the values provided:

Growth Rate = ((220 - 200) / 200) × 100% = (20 / 200) × 100% = 0.1 × 100% = 10%

Therefore, the growth rate of nominal GDP between Year 1 and Year 2 is 10%.