Question

Suppose real gdp was 120 in year 1 and 156 in year 2. The growth rate of real gdp is

Answer 1

Explanation:

YEAR

GDP

1

120

2

156

Subtract the previous from the current GDP

156-120=36

Divide by the previous GDP

36/120= 0.3

Convert to percentage by multiplying by 100

0.3*100= 30

The growth rate is 30%