If the GDP of a country is $2 trillion and it decreases by 10%, what will be the

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Question: If the GDP of a country is $2 trillion and it decreases by 10%, what will be the new GDP?

Options:

Correct Answer: $1.8 trillion

Solution:

New GDP = 2 trillion * (1 - 0.10) = 2 trillion * 0.90 = $1.8 trillion.

If the GDP of a country is $2 trillion and it decreases by 10%, what will be the new GDP?

If the GDP of a country is $2 trillion and it decreases by 10%, what will be the new GDP?

Step 1: Identify the original GDP, which is $2 trillion.
Step 2: Determine the percentage decrease, which is 10%.
Step 3: Convert the percentage decrease into a decimal by dividing by 100. So, 10% becomes 0.10.
Step 4: Calculate the amount of decrease by multiplying the original GDP by the decimal. This is $2 trillion * 0.10.
Step 5: Calculate the amount of decrease, which is $0.2 trillion (or $200 billion).
Step 6: Subtract the amount of decrease from the original GDP. So, $2 trillion - $0.2 trillion = $1.8 trillion.
Step 7: The new GDP after the decrease is $1.8 trillion.

GDP Calculation – Understanding how to calculate the new GDP after a percentage decrease.