ECONOMICS
ECONOMIC GROWTH
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Original GDP / Change in GDP x 100
|
|
|
Original GDP-Change in GDP x 100
|
|
|
Change in GDP / Original GDP x 100
|
|
|
Change in GDP-Original GDP x 100
|
Detailed explanation-1: -This calculation is done by factoring in a GDP deflator. A GDP deflator is the quotient of nominal GDP divided by real GDP divided by 100, so this method is only useful in determining real GDP if the GDP deflator is already known.
Detailed explanation-2: -The GDP of a certain period, when set against another, can show a comparison that can be measured using the given formula: Economic Growth = (GDP 2-GDP 1) / GDP 1 The result is expressed in a percentage. If the result is positive, it means the economy is growing by the said percent.
Detailed explanation-3: -To calculate the real GDP growth rate, you will base your calculation on real GDP figures as shown below: Real GDP growth rate = (most recent years real GDP-the last years real GDP) / the previous years real GDP.
Detailed explanation-4: -The size of an economy is typically measured by the total production of goods and services in the economy, which is called gross domestic product (GDP). Economic growth can be measured in ‘nominal’ or ‘real’ terms. Nominal economic growth refers to the increase in the dollar value of production over time.