If a country has a GDP of $1 trillion and aims for a 6% growth rate, what will b

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Question: If a country has a GDP of $1 trillion and aims for a 6% growth rate, what will be its GDP after one year?

Options:

Correct Answer: $1.06 trillion

Solution:

The GDP after one year will be $1 trillion * 1.06 = $1.06 trillion.

If a country has a GDP of $1 trillion and aims for a 6% growth rate, what will be its GDP after one year?

If a country has a GDP of $1 trillion and aims for a 6% growth rate, what will be its GDP after one year?

Step 1: Understand that GDP stands for Gross Domestic Product, which is the total value of all goods and services produced in a country.
Step 2: Identify the current GDP, which is $1 trillion.
Step 3: Know that the country wants to grow its GDP by 6%.
Step 4: To find the new GDP after one year, you need to calculate 6% of the current GDP.
Step 5: Calculate 6% of $1 trillion: 0.06 * $1 trillion = $0.06 trillion.
Step 6: Add this growth to the current GDP: $1 trillion + $0.06 trillion = $1.06 trillion.
Step 7: Therefore, the GDP after one year will be $1.06 trillion.

GDP Growth Calculation – Understanding how to calculate future GDP based on a current GDP and a specified growth rate.