If nominal spending growth is 5% and the economy is in recession at a -1% real growth rate, what is the inflation rate?

Name: If nominal spending growth is 5% and the economy is in recession at a -1% real growth rate, what is the inflation rate?
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Question

Quizplus · Accepted Answer

The nominal growth rate is 5% and the real growth rate is -1%. Therefore, the inflation rate can be calculated by subtracting the real growth rate from the nominal growth rate: 
5% - (-1%) = 5% + 1% = 6% 
Therefore, the inflation rate is 6%.

If Nominal Spending Growth Is 5% and the Economy Is