Question 59
HardOriginal questionAn economy produces only two goods. Year 1 is the base year.
| Good | Price, year 1 (₹) | Quantity, year 1 | Price, year 2 (₹) | Quantity, year 2 |
|---|---|---|---|---|
| Apples | 10 | 100 | 12 | 120 |
| Bread | 20 | 50 | 25 | 60 |
By what percentage did real GDP grow from year 1 to year 2?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Real GDP: year 1 = 2,000 (base year), year 2 = 2,400.
Growth = (2,400 − 2,000) ÷ 2,000 × 100 = 20%.
Worth noting
47% is the growth of nominal GDP, which includes the rise in prices.
- Concept
- Real growth
- Typical timeTypical
- 100 s
- Your timeYours
- —
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