If the GDP of a country is $2 trillion and it decreases by 2% in a year, what wi

₹0.0

Question: If the GDP of a country is $2 trillion and it decreases by 2% in a year, what will be the GDP at the end of the year?

Options:

Correct Answer: $1.98 trillion

Solution:

GDP after decrease = 2 trillion * (1 - 0.02) = 2 trillion * 0.98 = $1.96 trillion.

If the GDP of a country is $2 trillion and it decreases by 2% in a year, what will be the GDP at the end of the year?

If the GDP of a country is $2 trillion and it decreases by 2% in a year, what will be the GDP at the end of the year?

Step 1: Identify the initial GDP of the country, which is $2 trillion.
Step 2: Determine the percentage decrease, which is 2%.
Step 3: Convert the percentage decrease into a decimal by dividing by 100. So, 2% becomes 0.02.
Step 4: Calculate the amount of decrease by multiplying the initial GDP by the decimal decrease: $2 trillion * 0.02 = $0.04 trillion.
Step 5: Subtract the amount of decrease from the initial GDP: $2 trillion - $0.04 trillion = $1.96 trillion.
Step 6: The final GDP at the end of the year is $1.96 trillion.

Percentage Decrease – Understanding how to calculate a decrease in a value using percentages.
GDP Calculation – Applying basic arithmetic to economic indicators like GDP.