In Swaziland,the nominal GDP growth rate is 5 percent and the inflation rate is 7 percent.The real GDP growth rate in Swaziland is approximately ________.

Question

Quizplus · Accepted Answer

The real GDP growth rate can be approximated by subtracting the inflation rate from the nominal GDP growth rate. Therefore, 5 percent (nominal GDP growth rate) - 7 percent (inflation rate) = -2 percent.

In Swaziland,the Nominal GDP Growth Rate Is 5 Percent and the Inflation