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)

25%


150%


125%


1.5%

Answer 1

Growth rate = (7.5 - 6) / 6 = 1.5 / 6 = 0.25 = 25%.