In 1990, the GDP of Canada was CAD 680 billion, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. In 2000, the GDP of Canada was CAD 1,000 billion, and the exchange rate was that $1 Canadian was worth 69 U.S. cents.
By what percentage did the GDP of Canada increase from 1990 to 2000 in Canadian dollars?
Gross Domestic Product:
The gross domestic product is the value of all the finished products and services made within the territories of a country. It is the value occurred at a certain period usually for a year.
Answer and Explanation:
Let us compute the percentage increase in GDP. Since the value of both years are already in Canadian dollars, we ignore the exchange rate.
- Percentage increase = (GDP in 2000 - GDP in 1990) / GDP in 1990
- Percentage increase = (1,000 billion - 680 billion) / 680 billion
- Percentage increase = 320 billion / 680 billion = 0.47 (rounded off to two decimal places)
The percentage increase in GDP from 1990 to 2000 is 47%.
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from Economics 102: MacroeconomicsChapter 4 / Lesson 3