The Government Reports That "GDP Increased by 1

Multiple Choice

The government reports that "GDP increased by 1.6 percent in the last quarter." What does this statement mean?

A) GDP increased by 6.4 percent for the year.
B) GDP increased at an annual rate of 6.4 percent during the last quarter.
C) GDP increased at an annual rate of 1.6 percent during the last quarter.
D) GDP increased at an annual rate of 0.4 percent during the last quarter.