Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the growth rate of real GDP between the two years?
$$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Barrels of } \
\text { Oil Sold }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 80,000 & \$ 60 \
\hline \text { This year } & 83,000 & \$ 63 \
\hline
\end{array}$$
A)2.25%
B)9%
C)5%
D)3.75%

Question

Consider the data shown in the table. Assume that the economy produces only barrels of oil. What is the growth rate of real GDP between the two years?
$$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Barrels of } \
\text { Oil Sold }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 80,000 & \$ 60 \
\hline \text { This year } & 83,000 & \$ 63 \
\hline
\end{array}$$
A)2.25%
B)9%
C)5%
D)3.75%

Quizplus · Accepted Answer

To calculate the growth rate of real GDP, we use the quantity of goods produced, not their current prices. Real GDP growth from last year to this year is calculated as $\frac{83,000 - 80,000}{80,000} \times 100 = \frac{3,000}{80,000} \times 100 = 3.75\%$.

Consider the Data Shown in the Table A)225% B)9% C)5% D)3

Consider the Data Shown in the Table A)225%
B)9%
C)5%
D)3