How to Calculate Real GDP Growth Rates

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

In year one, nominal GDP is $5,000, while real GDP is $4,500. In year two, nominal GDP is $5,500, while real GDP is $4,800. What was the growth rate of real GDP between years one and two?

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1. In year one, nominal GDP is $5,000, while real GDP is $4,500. In year two, nominal GDP is $5,500, while real GDP is $4,800. Which of the following statements is TRUE?

2. If nominal GDP increased by 5.1% and real GDP increased by 2.5% last year, which of the following is TRUE?

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About This Quiz & Worksheet

The quiz is a mixture of math problems and definitions. Some of the math problems will require you to calculate the rate of real GDP growth. The definition related questions will ask you to identify characteristics of a particular situation.

Quiz & Worksheet Goals

To complete the quiz successfully, you will need to understand the following topics:

  • Growth rates
  • Real GDP
  • Nominal GDP
  • The formula for real GDP growth rate

Skills Practiced

The quiz will help you practice the following skills:

  • Making connections - use understanding of the concept of real GDP
  • Critical thinking - apply relevant concepts to examine information about the economy in a different light
  • Problem solving - use acquired knowledge to solve real GDP practice problems
  • Interpreting information - verify that you can read information regarding nominal GDP and interpret it correctly

Additional Learning

Complete the quiz and head over to the related lesson How to Calculate Real GDP Growth Rates. The lesson will accomplish the following:

  • Defining the two terms for GDP growth rates
  • Understanding how GDP changes from year to year
  • Exploring accelerating and slowing economies
  • Explaining how real GDP accounts for inflation
  • Walking through the real GDP growth rate formula
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