# In 1990, the GDP of Canada was CAD 680 billion, and the exchange rate was that $1 Canadian was... ## Question: 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.

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%.