Economic growth from current year (c) to previous year (p) is given by ?
Correct answer: A. [(GDPc - GDPp)/ DGPp]100
- A. [(GDPc - GDPp)/ DGPp]100
- B. [(GDPc - GDPp) DGPp]100
- C. GNPc - DGPp100)
- D. [GDPp - GDPc]100
Explanation
Growth compares the change in GDP with the previous year's GDP: (GDPc − GDPp) divided by GDPp, multiplied by 100. Option a contains a typographical error, writing DGPp instead of GDPp, but clearly gives the intended formula.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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