In 1950 GDP in the United Kingdom (measured in year 2005 pounds) was ₤317 billion. In 2000
it was ₤1,108 billion. Calculate the growth rate of real GDP in the United Kingdom over this period.

To calculate the growth rate of real GDP over a period of time, we use the **compound annual growth rate (CAGR)** formula. This measures the average growth rate per year over a given period. The formula for CAGR is:

\[
CAGR = \left( \frac{V_f}{V_i} \right)^{\frac{1}{t}} - 1
\]

Where:
- \( V_f \) is the final value (GDP in 2000),
- \( V_i \) is the initial value (GDP in 1950),
- \( t \) is the number of years between the two values.

Given:
- \( V_f = 1,108 \, \text{billion pounds} \)
- \( V_i = 317 \, \text{billion pounds} \)
- \( t = 2000 - 1950 = 50 \, \text{years} \)

Let's plug these values into the formula and calculate the CAGR.

\[
CAGR = \left( \frac{1108}{317} \right)^{\frac{1}{50}} - 1
\] 

I'll calculate this now.The compound annual growth rate (CAGR) of real GDP in the United Kingdom from 1950 to 2000 is approximately **2.53% per year**.

Would you like more details or have any questions?

Here are 5 related questions to expand your understanding:
1. How does compound annual growth rate (CAGR) differ from average growth rate?
2. What are some factors that influence GDP growth in a country?
3. Can you explain how inflation impacts the calculation of real GDP?
4. How would a decreasing growth rate affect the overall economy?
5. What are the implications of a high GDP growth rate for a country's population?

**Tip:** When comparing GDP across different years, always use **real GDP** (adjusted for inflation) to get an accurate measure of economic growth.

In 1950 GDP in the United Kingdom (measured in year 2005 pounds) was ₤317 billion. In 2000 it was ₤1,108 billion. Calculate the growth rate of real GDP in the United Kingdom over this period.

Learn how to calculate the compound annual growth rate (CAGR) of real GDP in the United Kingdom from 1950 to 2000 using the formula CAGR = (Vf/Vi)^(1/t) - 1. In this example, GDP grew from ₤317 billion to ₤1,108 billion over 50 years, resulting in a growth rate of 2.53%. Suitable for advanced economics or math students.

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