Question
Change in Gross Domestic Product Quick Check
2 of 52 of 5 Items
Question
The GDP for a hypothetical economy is determined to be 6 billion dollars in year 1 and 7.5 billion dollars in year 2. What is the growth rate of GDP from year 1 to year 2?(1 point)
Responses
150%
150 percent
25%
25 percent
125%
125 percent
1.5%
Answers
GPT-4o mini
To calculate the growth rate of GDP from year 1 to year 2, you can use the following formula:
\[
\text{Growth Rate} = \frac{\text{GDP in Year 2} - \text{GDP in Year 1}}{\text{GDP in Year 1}} \times 100
\]
Plugging in the values:
\[
\text{Growth Rate} = \frac{7.5 \text{ billion} - 6 \text{ billion}}{6 \text{ billion}} \times 100
\]
\[
= \frac{1.5 \text{ billion}}{6 \text{ billion}} \times 100
\]
\[
= 0.25 \times 100
\]
\[
= 25\%
\]
Therefore, the growth rate of GDP from year 1 to year 2 is **25%**.
\[
\text{Growth Rate} = \frac{\text{GDP in Year 2} - \text{GDP in Year 1}}{\text{GDP in Year 1}} \times 100
\]
Plugging in the values:
\[
\text{Growth Rate} = \frac{7.5 \text{ billion} - 6 \text{ billion}}{6 \text{ billion}} \times 100
\]
\[
= \frac{1.5 \text{ billion}}{6 \text{ billion}} \times 100
\]
\[
= 0.25 \times 100
\]
\[
= 25\%
\]
Therefore, the growth rate of GDP from year 1 to year 2 is **25%**.