How is 'real' economic growth percentage calculated?

The calculation of 'real' economic growth percentage is based on measuring how the economy has changed in terms of the value of goods and services produced, adjusted for inflation. The correct approach involves taking the difference between the current GDP and the previous GDP, which shows how much growth has occurred. This difference is then divided by the previous GDP to provide a proportionate measure of growth. Finally, multiplying this value by 100 converts it into a percentage format.

This method accurately reflects the growth of the economy in real terms, as it accounts for the changes in price levels (inflation or deflation) that can distort nominal values. By using the previous GDP as the reference point, it allows for a clearer understanding of genuine economic progress.

The other options do not provide a correct method for calculating real economic growth percentage. For instance, simply dividing the current GDP by the previous GDP does not give a percentage change and does not factor in inflation. Similarly, looking at the real GDP from last quarter compared to the same quarter last year involves a different calculation unrelated to the growth percentage over the previous GDP. Lastly, adjusting nominal GDP by the inflation rate and dividing by population does not relate directly to the calculation of economic growth, since it confounds growth with population metrics