If Real GDP in Country a Is $500 Billion 1

question 24

Multiple Choice

If real GDP in country A is $500 billion 1 year and $540 billion the following year,then the growth rate for this country between the 2 years is:

• A) 4%.
• B) 8%.
• C) 0.8%.
• D) 10%.

---

Definitions:

Recessions

Periods in which an economy experiences a temporary decline in trade and industrial activity, usually marked by a fall in GDP in two successive quarters.

Budget Deficits

The situation where a government's expenditures surpass its revenues within a specific timeframe, often a fiscal year.

Depression

A prolonged and severe downturn in economic activity, characterized by high unemployment, low consumer spending, and a decrease in production.

Spending

The amount of money expended by individuals, businesses, or governments on goods and services.