Question

An emerging country has a real GDP of $1532.8 billion. After one year, real GDP has grown to $1.640×10³ billion. In percentage terms, what is the growth rate?

Answer 1

The growth rate of the country's real GDP is approximately 7%, calculated by taking the change in GDP over the initial GDP and then multiplying by 100.

Step-by-step explanation:

To calculate the real GDP growth rate, you first need to understand the initial and final GDP values. The initial real GDP is $1532.8 billion, and the final real GDP after one year is $1.640×10³ billion, which can be converted to $1640 billion for easier comparison.

The growth rate can be calculated using the formula: Growth Rate (%) = ((Final GDP - Initial GDP) / Initial GDP) × 100 By substituting the given values, we find: Growth Rate (%) = (($1640 billion - $1532.8 billion) / $1532.8 billion) × 100 Growth Rate (%) = ($107.2 billion / $1532.8 billion) × 100 Growth Rate (%) = 0.069961 × 100 Growth Rate (%) = 6.9961% Therefore, the real GDP growth rate is approximately 7%.