Final answer:
To calculate the economic growth rate, use the formula for percentage change in GDP. Subtract the initial GDP from the final GDP, divide by the initial GDP, and multiply by 100 to get the growth rate in percentage. If the GDP grew from $500 billion to $1500 billion from 1960 to 2010, the growth rate would be 200%.
Step-by-step explanation:
The growth rate of an economy, such as the Gross Domestic Product (GDP), is an essential measure of economic performance. The formula to calculate the growth rate is the percentage change in GDP over a specific period. To find this, you can use the formula:
Growth Rate = [(GDP in final year - GDP in initial year) / GDP in initial year] x 100
As an example, if we want to find the real GDP growth rate from 1960 to 2010, we would subtract the GDP of 1960 from the GDP of 2010, divide by the GDP of 1960, and then multiply by 100 to express it as a percentage.
For instance, if the GDP in 1960 was $500 billion and in 2010 it was $1500 billion, the calculation would be:
Growth Rate = [($1500 billion - $500 billion) / $500 billion] x 100 = [(1000/500) x 100] = 200%
This result indicates that the GDP increased by 200% from 1960 to 2010.