If real GDP for China was 10,312 billion yuan at the end of 2002 and 9,593 billion yuan at the end of 2001 , what is the annual rate of growth of the Chinese economy?

Real Gross Domestic Product (GDP) is a key economic indicator that represents the value of all goods and services produced by a country over a specific period, adjusted for inflation. Unlike nominal GDP, which measures the total output in current prices, real GDP accounts for price changes, making it a more accurate reflection of an economy's size and how it's growing over time.

Understanding the real GDP helps in comparing the economic performance of a country across different years, as it is not influenced by the changes in price levels. When it comes to homework exercises like the one in question, calculating changes in real GDP is crucial for determining the economic growth rate, which is essential for economic analysis and policy making. Real GDP calculation often involves using a base year to eliminate the effects of inflation and provide a consistent benchmark.

The Chinese economy has been one of the fastest-growing in the world over the last few decades. Its rapid expansion has been due to a mix of factors, including industrialization, technological advancement, and globalization. China's transition from a predominantly agrarian society to an industrial powerhouse has seen it become the world's second-largest economy.

In exercises that examine the Chinese economy, it's important to understand the context of its growth. Factors such as government policies, export levels, and foreign investments can greatly impact the real GDP. These should be considered when analyzing the annual rate of growth, as they provide insight into how and why the economy develops over time.

The growth rate formula is a mathematical tool that measures the rate at which a country's economy grows or shrinks over a period of time. It is calculated by taking the difference between the GDP value of one year and the GDP of the previous year, dividing it by the GDP of the previous year, and then multiplying the result by 100 to express it as a percentage.

In the context of the provided homework exercise, the formula \(\text{Growth rate} = \left(\frac{\text{GDP for year 2} - \text{GDP for year 1}}{\text{GDP for year 1}}\right) \times 100\) allows students to quantify the change in the economy's size. Clarity in using and understanding this formula is critical for students, as growth rates serve as fundamental indicators in economics to assess economic health and make comparative analyses over time or between different economies.