If the nominal GDP was reported at $211.3 billion and real GDP was reported at $207.7 billion, what was the inflation rate for the period?

Question

Quizplus · Accepted Answer

The inflation rate can be calculated using the formula:
Inflation rate = ((Nominal GDP - Real GDP)/Real GDP) x 100
= (($211.3 billion - $207.7 billion)/$207.7 billion) x 100
= (3.6/207.7) x 100
= 1.73%
Therefore, the correct answer is B) 1.73%.

If the Nominal GDP Was Reported at $211