If nominal GDP increases by 5 percent a year and the GDP price index rises by 2

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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. 7 percent a year

B. 3 percent a year

C. 2.5 percent a year

D. 10 percent a year

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 21, 2018 05:55 AM

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If nominal GDP increases by 5 percent a year and the GDP price index rises by 2

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Foundations of Macroeconomics

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