Question

How much more output does the $20,600 billion economy in the United States (in 2019) produce when GDP increases by 2 percent? $

Answer 1

When the GDP of the United States increases by 2 percent, it produces an additional $412 billion in output.

Step-by-step explanation:

To calculate how much more output the U.S. economy produces when GDP increases by 2 percent, we can use the formula for percentage increase:

GDP increase = Original GDP x (Percentage increase / 100)

Here, the Original GDP is $20,600 billion and the Percentage increase is 2 percent. Plugging these values into the formula gives:

GDP increase = $20,600 billion x (2 / 100) = $412 billion

So, when the GDP of the United States increases by 2 percent, it produces $412 billion more output. This is under the assumption that the economy refers to the nominal GDP. If you're considering real GDP, this value would be adjusted for inflation as mentioned in the context provided.