Marketopia’s real GDP was $520 billion in 2014 and $550 billion in 2015. Its population was 150 million in 2014 and 155 million in 2015. On the other hand, Econland’s real GDP was $200 billion in 2014 and $210 billion in 2015; and its population was 53 million in 2014 and 55 million in 2015. Which of the following statements is true?

The question is incomplete, the complete question is as follows:

Marketopia's real GDP was $520 billion in 2014 and $550 billion in 2015. Its population was 150 million in 2014 and 155 million in 2015. On the other hand, Econland's real GDP was $200 billion in 2014 and $210 billion in 2015, and its population was 53 million in 2014 and 55 million in 2015. Which of the following statements is true? ( 8 01:36:50 Multiple Choice

a. Marketopia's real GDP growth in 2015 is higher than Econland's.

b. Econland's real GDP growth in 2015 is higher than Marketopia's.

c. Marketopia's real GDP growth in 2015 is identical to Econland's.

d. Marketopia's and Econland's real GDP growth rates in 2015 are both higher than 10%.

The answer is: a

Explanation:

Real GDP (Gross Domestic Product) is the output produced within a country in a specified period, adjusted for inflation, using prices of a base year (a year, chosen arbitrarily, wherein prices are set to 100 for the purpose of comparison or reference). To calculate the real GDP growth rate, the growth formula used is:

(Current year GDP - Prior Year GDP)/Prior Year GDP

Using this formula, Marketopia's Real GDP growth rate is 5.77% ($550 billion - $520 billion)/ $520 billion. Econland's real GDP growth rate is 5% ($210  billion - $200 billion)/ $200 billion. Marketopia's real GDP growth rate is higher that Econland's real GDP growth rate in 2015.

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