1. Real gross domestic product (GDP) increased from $16.62 trillion to $18.05 trillion, and the price...

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Question

1. Real gross domestic product (GDP) increased from $16.62 trillion to $18.05 trillion, and the price level increased from 12

business economics

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Answer 1

Answer #1

1.

Real GDP growth

=18.05/16.62-1

=8.6041%

inflation rate=123.4/120.0-1=2.8333%

Nominal GDP growth will be

=((1+Real GDP growth)*(1+inflation rate))-1

=((1+8.6041%)*(1+2.8333%))-1

=11.68%

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Answer 2

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