In 1945, the United States recorded real GDP growth of -1% and nominal GDP growth of 1.6%. What was the inflation rate in 1945?

Question

Quizplus · Accepted Answer

The inflation rate can be calculated by subtracting the real GDP growth from the nominal GDP growth and dividing the result by the real GDP growth. 
Inflation Rate = (Nominal GDP Growth - Real GDP Growth) / Real GDP Growth
= (1.6% - (-1%)) / (-1%) 
= 2.6%
Therefore, the answer is (C) 2.6%.

In 1945, the United States Recorded Real GDP Growth of -1