Question

If nominal GDP increases by 5 percent a year and the GDP price index rises by 2 percent a year, then real GDP increases by _______. A. 2.5 percent a year B. 3 percent a year C. 7 percent a year D. 10 percent a year

Name: if nominal gdp increases by 5 percent a year and the gdp price index rises by 2 percent a year then real gdp increases by a 25 percent a year b 3 percent a year c 7 percent a year d 53089
Uploaded: 2022-04-21T18:38:28-08:00
Duration: 1 min 54 s
Channel: Sanchit Jain
Description: if nominal gdp increases by 5 percent a year and the gdp price index rises by 2 percent a year then real gdp increases by a 25 percent a year b 3 percent a year c 7 percent a year d 53089

          If nominal GDP increases by 5 percent a year and the GDP price index rises by 2 percent a year, then real GDP increases by _______.
A.
2.5 percent a year
B.
3 percent a year
C.
7 percent a year
D.
10 percent a year

Added by Paul C.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Sanchit Jain

04/21/2022

Step 1

Step 1: Calculate the nominal GDP rate of increase: Nominal GDP rate of increase = 5% per year Show more…

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If nominal GDP increases by 5 percent a year and the GDP price index rises by 2 percent a year, then real GDP increases by _______. A. 2.5 percent a year B. 3 percent a year C. 7 percent a year D. 10 percent a year