If the GDP of a country is $2.5 trillion and it decreases by 2% due to a recessi

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Question: If the GDP of a country is $2.5 trillion and it decreases by 2% due to a recession, what will be the new GDP?

Options:

Correct Answer: $2.45 trillion

Solution:

New GDP = 2.5 trillion * (1 - 0.02) = 2.5 trillion * 0.98 = $2.45 trillion.

If the GDP of a country is $2.5 trillion and it decreases by 2% due to a recession, what will be the new GDP?

If the GDP of a country is $2.5 trillion and it decreases by 2% due to a recession, what will be the new GDP?

Step 1: Identify the original GDP, which is $2.5 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 decrease in GDP by multiplying the original GDP by the decimal decrease: $2.5 trillion * 0.02.
Step 5: Perform the multiplication: $2.5 trillion * 0.02 = $0.05 trillion.
Step 6: Subtract the decrease from the original GDP: $2.5 trillion - $0.05 trillion.
Step 7: Perform the subtraction: $2.5 trillion - $0.05 trillion = $2.45 trillion.
Step 8: The new GDP after the decrease is $2.45 trillion.

GDP Calculation – Understanding how to calculate the new GDP after a percentage decrease.
Percentage Decrease – Applying the concept of percentage decrease to a given value.