Question

if real gdp grows from $10 trillion in 2002 to $10.5 trillion in 2003, the growth rate for real gdp is
50%.
0.5%.
5%.
10%.

Explanation:

Step1: Recall GDP growth rate formula

The formula for the growth rate of real GDP is $ \text{Growth Rate} = \frac{\text{New GDP} - \text{Old GDP}}{\text{Old GDP}} \times 100\% $

Step2: Identify values

Old GDP (2002) = $10 trillion, New GDP (2003) = $10.5 trillion

Step3: Substitute into formula

$ \text{Growth Rate} = \frac{10.5 - 10}{10} \times 100\% = \frac{0.5}{10} \times 100\% = 0.05 \times 100\% = 5\% $

Answer:

5% (the option corresponding to 5% among the choices, e.g., if the options are as given, the correct one is the option with "5%")