Question

the base year for the united states is 2017. source: international monetary fund, world economic outlook database, april 2023. a. which country experienced the highest rate of economic growth during 2021? a. mexico at 4.72 percent b. france at 6.32 percent c. france at 6.74 percent d. united states at 5.80 percent

Explanation:

Step1: Calculate growth rate formula

The formula for the growth rate is \(Growth\ Rate=\frac{Current\ Year\ Value - Previous\ Year\ Value}{Previous\ Year\ Value}\times100\%\)

Step2: Calculate Mexico's 2021 growth rate

For Mexico: \(Value_{2020} = 17007\), \(Value_{2021}=17810\)
\(Growth\ Rate_{Mexico}=\frac{17810 - 17007}{17007}\times100\%=\frac{803}{17007}\times100\%\approx4.72\%\)

Step3: Calculate France's 2021 growth rate

For France: \(Value_{2020} = 2150\), \(Value_{2021}=2295\)
\(Growth\ Rate_{France}=\frac{2295 - 2150}{2150}\times100\%=\frac{145}{2150}\times100\% = 6.74\%\)

Step4: Calculate US's 2021 growth rate

For the US: \(Value_{2020}=20234\), \(Value_{2021} = 21408\)
\(Growth\ Rate_{US}=\frac{21408-20234}{20234}\times100\%=\frac{1174}{20234}\times100\%\approx5.80\%\)

Answer:

C. France at 6.74 percent