The Student Room Group
Uni students - Complete our survey >>
Uni students - Complete our survey >>
Uni students - Complete our survey >>

Formula for economic growth rate

How do you calculate economic growth rate?
Hi you ca use nominal or real GDP for the values.
Hope this helps!
(GDP in year 2 / GDP in year 1) - 1
Original post by Aidan.reed
Hi you ca use nominal or real GDP for the values.
Hope this helps!
(GDP in year 2 / GDP in year 1) - 1


Thanks but why is it minus 1? ?
Original post by BrownieLover
Thanks but why is it minus 1? ?


Because for example

(16000/15000) = 1.06666667

Some including my self see thats at 106.666..% so you can see thats a 6.66...% increase

(16000/15000) - 1 = 0.06666667 this way just gives you the increase you could then multiply that by 100 to give you something you're probably more familiar with

(16000/15000) - 1 = 0.06666667
0.06666667 x 100 = 6.666...7%

I hope this helps.

Quick Reply

Related discussions

Latest

Trending

Trending

Articles for you