What is the economy's growth rate between Quarter 3 and Quarter 4?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Quarter Quarter 1 Quarter 2 Quarter 3 Quarter 4
Nominal GDP $10,000 $12,000 $18,000 $24,000
Real GDP $8000 $9500 $11,000 $13,500
What is the economy's growth rate between Quarter 3 and Quarter 4?
 

Question 16 options:

 

A) 

11.3%
 

B) 

33.3%
 

C) 

22.7%
 

D) 

15.7%
Expert Solution
Step 1

Nominal Growth rate between quarter 3 and 4 = 

= Nominal GDP in quarter 4 - nominal GDP in quarter 3 / nominal GDP in quarter 3 × 100

= $24000 - $ 18000 / $18000 × 100

= $6000 / $18000 × 100

= 33.3% 

Real GDP growth rate between quartet 3 and 4 

= real GDP in quarter 4 - real GDP in quarter 3 / real GDP in quarter 3 × 100

= $13500 - $11000 / $11000 × 100

= 22.7 % 

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