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 $11,934 billion in 2011, what is the growth rate of the U. S. economy in 2011? (Enter your response rounded to one decimal place.)

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Business

Valerie Soto

31 May, 09:38

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 $11,934 billion in 2011, what is the growth rate of the U. S. economy in 2011? (Enter your response rounded to one decimal place.)

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Case Oconnor · Answer 1

Growth rate of GDP from 2010 to 2011 = 7.0%

Explanation:

The percentage rate of change (R. C) formula is:

R. C = ((Final value-Initial value) / Initial value) * 100

In this case the initial value corresponds to the GDP in 2010 and the final value corresponds to the GDP in 2011, if we apply the formula:

Rate of change (GDP) = (($11,934-$11,150) / $11,150) * 100

Rate of change (GDP) = 7.0%