If the GDP of a country is $800 billion and it decreases by 10% due to a recessi

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Question: If the GDP of a country is $800 billion and it decreases by 10% due to a recession, what will be the new GDP?

Options:

Correct Answer: $720 billion

Solution:

New GDP = 800 * (1 - 0.10) = 800 * 0.90 = $720 billion.

If the GDP of a country is $800 billion and it decreases by 10% due to a recession, what will be the new GDP?

If the GDP of a country is $800 billion and it decreases by 10% due to a recession, what will be the new GDP?

Step 1: Identify the original GDP, which is $800 billion.
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 800 * 0.10.
Step 5: Perform the multiplication: 800 * 0.10 = $80 billion. This is the amount the GDP decreases.
Step 6: Subtract the decrease from the original GDP to find the new GDP. So, $800 billion - $80 billion.
Step 7: Perform the subtraction: 800 - 80 = $720 billion.
Step 8: The new GDP after the decrease is $720 billion.

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