Table 15-4
The table below reports nominal and real GDP for the U.S.from 1929 to 1932.

-Refer to Table 15-3.What was the growth rate of real GDP for 1931?

Question

Table 15-4
The table below reports nominal and real GDP for the U.S.from 1929 to 1932.
 
-Refer to Table 15-3.What was the growth rate of real GDP for 1931?

Quizplus · Accepted Answer

To calculate the growth rate of real GDP for 1931, we need to use the formula:
(Real GDP in 1931 - Real GDP in 1930) / Real GDP in 1930 x 100

Plugging in the numbers from the table, we get:
(91.2 - 97.7) / 97.7 x 100 = -6.49%

Therefore, the correct answer is C. Real GDP is a better gauge of economic well-being than nominal GDP because it takes into account changes in the price level. Nominal GDP only measures the total value of goods and services produced in a country, without taking inflation into account.

Table 15-4 the Table Below Reports Nominal and Real GDP for the for the U.S.from