If real GDP grew by 2% and the inflation rate was 2%,then nominal GDP grew by:
A) 2%.
B) 4%.
C) 0%.
D) 1%.
E) 3%.

Name: If real GDP grew by 2% and the inflation rate was 2%,then nominal GDP grew by: A) 2%. B) 4%. C) 0%. D) 1%. E) 3%.
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Quizplus · Accepted Answer

Nominal GDP is calculated using current market prices, while real GDP is adjusted for inflation. Therefore, if real GDP grew by 2% and the inflation rate was 2%, then nominal GDP would grow by the sum of the real GDP growth and the inflation rate, which is 2% + 2% = 4%.

If Real GDP Grew by 2% and the Inflation Rate