Final answer:
News reports indicating economic growth in a specific quarter are referring to the percentage change in real GDP. Governments report GDP growth at an annualized rate by multiplying the calculated growth for the quarter by four.
Step-by-step explanation:
When news reports indicate that "the economy grew 1.2% in the first quarter," the reports are referring to the percentage change in real GDP. By convention, governments report GDP growth at an annualized rate: Whatever the calculated growth in real GDP was for the quarter, we multiply it by four when it is reported as if the economy were growing at that rate for a full year.