Question

On the basis of the following hypothetical data:

Year	Nominal GDP	Nominal GDP adjusted to base year
2020	3,000	4,000
2023	4,000	4,500

Calculate the percentage change in Real Gross Domestic Product in the year 2023 using 2020 as the base year.

Answer 1

Percentage change in Real GDP = \(\frac{Change \ in\ Real\ GDP}{Real \ GDP}\times100\)

\( = \frac{(4,500 – 4,000)}{4,000}\times 100\)

= 12.5 %