Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the growth rate of real GDP between the two years?
$$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Tons of Frozen } \
\text { Fish Sold }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 100 & \$ 1,800 \
\hline \text { This year } & 105 & \$ 1,850 \
\hline
\end{array}$$
A)3%
B)8%
C)5%
D)11%

Question

Consider the data shown in the table. Assume that the economy produces only frozen fish. What is the growth rate of real GDP between the two years?
$$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Tons of Frozen } \
\text { Fish Sold }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Price }
\end{array} \
\hline \text { Last year } & 100 & \$ 1,800 \
\hline \text { This year } & 105 & \$ 1,850 \
\hline
\end{array}$$
A)3%
B)8%
C)5%
D)11%

Quizplus · Accepted Answer

To calculate the growth rate of real GDP, we use the quantity of goods produced, ignoring the changes in prices. Last year, 100 tons were sold, and this year, 105 tons were sold. The growth rate in real terms is $\frac{105 - 100}{100} \times 100\% = 5\%$.

Consider the Data Shown in the Table A)3% B)8% C)5% D)11

Consider the Data Shown in the Table A)3%
B)8%
C)5%
D)11