If the GDP of a country is $2 trillion and it decreases by 10% due to a recessio

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

If the GDP of a country is $2 trillion and it decreases by 10% due to a recession, 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 remaining percentage after the decrease. This is 1 - 0.10 = 0.90.
Step 5: Multiply the original GDP by the remaining percentage. So, $2 trillion * 0.90.
Step 6: Perform the multiplication: $2 trillion * 0.90 = $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.
Percentage Decrease – Applying the concept of percentage decrease to a monetary value.