Suppose nominal GDP for an economy rose from $120 billion in 2016 to $150 billion in 2017 and that the inflation rate over the same period was 5 percent. By what percentage did real GDP increase between 2016 and 2017? O 40% 35% 20% 30% 25%

Suppose nominal GDP for an economy rose from $120 billion in 2016 to $150 billion in 2017 and that the inflation rate over the same period was 5 percent. By what percentage did real GDP increase between 2016 and 2017? O 40% 35% 20% 30% 25%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose nominal GDP for an economy rose from $120 billion in 2016 to $150 billion in 2017 and
that the inflation rate over the same period was 5 percent. By what percentage did real GDP
increase between 2016 and 2017?
O 40%
O 35%
O 20%
O 30%
O 25%

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