What is the percentage change in nominal GDP from year 1 to year 2 for country A?

To determine the percentage change in nominal GDP from year 1 to year 2, the formula to use is:

[ \text{Percentage Change} = \frac{\text{GDP in Year 2} - \text{GDP in Year 1}}{\text{GDP in Year 1}} \times 100

]

If the calculation yields a result of 5%, it indicates that the nominal GDP increased by this percentage from year 1 to year 2. This reflects the overall growth in the economy's total value of goods and services produced without adjusting for inflation.

A percentage change of 5% demonstrates a moderate growth, which could be attributed to various factors such as increased consumption, investment, government spending, or higher exports. It is important to analyze the context of the economy to understand the underlying causes of this growth.

The other percentages, like 2% and 10%, represent different levels of economic growth, but 5% directly reflects the calculated result based on the given nominal GDP figures for the specific years in question. The choice of 20% signifies an even higher increase, suggesting either robust economic expansion or, potentially, an anomaly or highly favorable economic conditions not evident in the given data.