Question

Economists often are interested in percentage change from one period to the next. The percentage rate of change of gross domestic product​ (GDP) is an important macroeconomic variable. If in 2010 GDP was​ $11,150 billion​ dollars, and GDP increased to ​$11 comma 78011,780 million in​ 2011, what is the growth rate of the U.S. economy in​ 2011?

Answer 1

Answer:

The growth rate of the U.S economy in 2011 was 5.65%

Explanation:

This is a simple calculation

We use this formula to calculate percent changes from one period to another:

% change = $\frac{New Value - Old Vaue}{Old Value} * 100$

We have that the GDP for 2010 was $11,150 billion and the GDP in 2011 was $11,780 billions we then apply the formula:

% change = $\frac{11,780 - 11,150}{11,150} * 100$

% change = $\frac{630}{11,150} = 0.056 * 100 = 5.65%$

This means that the growth rate of the U.S economy in 2011 was 5.65%