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In the Economy of Outlandia Nominal GDP Grew by 8

Question 71

Multiple Choice

In the economy of Outlandia nominal GDP grew by 8% last year and the GDP deflator increased from
130 to 136.5. As a result:


A) real GDP declined by 1.5%.
B) real GDP increased by 14.5%.
C) real GDP was unchanged.
D) real GDP increased by 3%.

Correct Answer:

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