Suppose an economy’s real GDP is $50,000 in year 1 and $51,200 in year 2. What is the growth rate of its real

Question

Suppose an economy’s real GDP is $50,000 in year 1 and $51,200 in year 2. What is the growth rate of its real GDP?

Answer 1

51.2 / 50 = 1.024 = +2.4%

Answer: Growth rate of Real GDP is +2.4%

Answer 2

2.4 % growth