Answer to Question #13422 in Economics of Enterprise for Leena

Question

Suppose an economies real GDP is N$ 30 000 in year 1 and N$ 31200 in year 2. what is the growth rate of its real GDP?

Answer 1

Growth rate of real GDP is the percentage change in real GDP from one year to the next.
Growth rate of GDP = [GDP(year 2) - GDP(year 1)]/ GDP(year 1)*100
Growth rate of real GDP from year 1 to year 2 = ($31,200 - $30,000)/$30,000)*100 = 4%.