A national news source reports the nominal gross domestic product (GDP)grew 6 percent in the last year.However,inflation was 4 percent.What was the real GDP growth?

Question

Quizplus · Accepted Answer

Real GDP growth is calculated by subtracting the inflation rate from the nominal GDP growth rate. In this case, real GDP growth would be 6 percent - 4 percent = 2 percent. Therefore, the correct answer is B) 2 percent.

A National News Source Reports the Nominal Gross Domestic Product