If the percent change in nominal GDP is 5% and inflation is 3%, the percent change in real GDP is:

Name: If the percent change in nominal GDP is 5% and inflation is 3%, the percent change in real GDP is:
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Quizplus · Accepted Answer

The percent change in real GDP is equal to the percent change in nominal GDP minus the inflation rate. So, if the percent change in nominal GDP is 5% and inflation is 3%, the percent change in real GDP is 5% - 3% = 2%.

If the Percent Change in Nominal GDP Is 5% and Inflation