If nominal GDP grows by 7%, while the GDP deflator increases from 110 to 115.5 and population grows by 5% per capita real GDP:
A) rises by 2%.
B) is unchanged.
C) falls by 2%.
D) falls by 1%.

Question

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The Answer of If nominal GDP grows by 7%, while the GDP deflator increases from 110 to 115.5 and population grows by 5% per capita real GDP:
A) rises by 2%.
B) is unchanged.
C) falls by 2%.
D) falls by 1%.

If Nominal GDP Grows by 7%, While the GDP Deflator