Country X had a real GDP of ₦800 billion in 2022 and ₦860 billion in 2023. What was the economic growth rate for 2023?
A6.5%
B7.0%
C7.5%CORRECT
D8.0%
GCEEconomicsEconomic Development2020
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Why the answer is C, and why the others tempt you.
The economic growth rate is calculated as: [(GDP in current year − GDP in previous year) ÷ GDP in previous year] × 100. This gives [(₦860bn − ₦800bn) ÷ ₦800bn] × 100 = [₦60bn ÷ ₦800bn] × 100 = 0.075 × 100 = 7.5%. The other options represent common arithmetic errors students make when computing percentage changes.
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