If the growth rate of real GDP and the rate of inflation in an economy are 2 percent and 1 percent,respectively,the growth rate of nominal GDP in the economy must be ________.
A) 1 percent
B) 2 percent
C) 3 percent
D) 5 percent

Question

Quizplus · Accepted Answer

The growth rate of nominal GDP is the sum of the growth rate of real GDP and the rate of inflation. Therefore, the growth rate of nominal GDP in this economy is 2% + 1% = 3%.

If the Growth Rate of Real GDP and the Rate