Question

If Economy A's GDP increases by $10,000 and Economy B's GDP grows by $5,000 from 2010...

If Economy A's GDP increases by $10,000 and Economy B's GDP grows by $5,000 from 2010 to 2011. Given this information, which of the following could you say:

Economy A is growing faster than Economy B.

Economy B is growing more slowly than Economy A

Both A and B are true.

Not enough information to tell.
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Homework Answers

Answer #1

The GDP can be defined the market value of all goods and services which are produced in the domestic territory of the country in the current financial years.

As it has been given that if Economy A's GDP increases by $10,000 and Economy B's GDP grows by $5,000 from 2010 to 2011. GDP growth rate= (Absolute growth / last year GDP)100

As it can be seen in the given information, there last year GDP is not given, so we cannot compare the growth rate of both economy with the last year GDP absolute amount.

Hence we need more information for this question.

Hence option fourth is the correct answer.

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