Answer to Question #146687 in Macroeconomics for Arirothe

Question

UK’s real GDP was 1 360 trillion pounds [£] in 2009 and 1 434 trillion pounds in 2010. UK’s population was 191.5 million people in 2009 and 193.3 million in 2010.
Calculate.
(a) Economic growth.3

Answer 1

Economic growth rate

2009—1360 trillion

2010---1434 trillion

2009-base year

( Current year - Previous year ) /Base year

(1434 - 1360 )/1360

=0.05441