Assume a country's GDP is $180
 billion, and government spending equals $36.9
 billion. Most economists in the country note a significant increase in government spending relative to the previous century. They relate the increase to the implementation of efficient automatic stabilizers. In the previous century, government spending as a share of GDP was 2.1%
.

Calculate by how many percentage points government spending as a share of GDP has changed relative to the last century. Round your answer to one decimal place if necessary and enter in the box.

To calculate the change in government spending as a share of GDP relative to the previous century, we can follow these steps:

1. **Calculate the current government spending as a share of GDP:**

   \[
   \text{Current share} = \frac{\text{Government spending}}{\text{GDP}} \times 100
   \]

   Using the values given:

   \[
   \text{Current share} = \frac{36.9}{180} \times 100
   \]

2. **Calculate the current share value:**

   \[
   \text{Current share} = 20.5\%
   \]

3. **Determine the change in government spending as a share of GDP:**

   The previous century’s share was 2.1%, so:

   \[
   \text{Change} = \text{Current share} - \text{Previous share} = 20.5\% - 2.1\%
   \]

4. **Calculate the difference:**

   \[
   \text{Change} = 18.4 \text{ percentage points}
   \]

Thus, the government spending as a share of GDP has changed by **18.4 percentage points** relative to the last century.

Assume a country's GDP is $180 billion, and government spending equals $36.9 billion. Most economists in the country note a significant increase in government spending relative to the previous century. They relate the increase to the implementation of efficient automatic stabilizers. In the previous century, government spending as a share of GDP was 2.1%. Calculate by how many percentage points government spending as a share of GDP has changed relative to the last century. Round your answer to one decimal place if necessary and enter in the box.

Learn how to calculate the percentage point change in government spending as a share of GDP. This example uses a GDP of $180 billion and government spending of $36.9 billion, comparing it to a previous share of 2.1%. Understand key concepts such as percentage calculation and ratio. Suitable for students in Grades 9-10.

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