Bobby was researching the economic growth of a country between 2006 and 2011. Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP. His results indicate that

Question

Quizplus · Accepted Answer

Real GDP accounts for inflation and reflects the actual increase in the quantity of goods and services produced. Since real GDP increased by 12% while nominal GDP increased by only 10%, it indicates that the quantity of goods and services produced increased and prices decreased over the period.

Bobby Was Researching the Economic Growth of a Country Between