Answer the question on the basis of the following information: $\begin{array}{c}
\begin{array}{c}
\
\underline{\text { Year }} \
1 \
2 \
3 \
4 \
5
\end{array}
\begin{array}{c}
\text { Nominal}\
\underline{\text { GDP } }\
\$ 550 \
560 \
576 \
586 \
604
\end{array}
\begin{array}{c}
\text { Price}\
\underline{\text { Index}}\
140 \
135 \
120 \
117 \
108
\end{array}
\end{array}$
The economy above has experienced a:

Question

Answer the question on the basis of the following information: $\begin{array}{c}
\begin{array}{c}
\
\underline{\text { Year }} \
1 \
2 \
3 \
4 \
5
\end{array}
\begin{array}{c}
\text { Nominal}\
\underline{\text { GDP } }\
 \$ 550 \
560 \
576 \
586 \
604
\end{array}
\begin{array}{c}
\text { Price}\
\underline{\text { Index}}\
140 \
135 \
120 \
117 \
108
\end{array}
\end{array}$
 The economy above has experienced a:

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the price index (and multiplying by 100). As the price index decreases and nominal GDP increases, real GDP rises.

Answer the Question on the Basis of the Following Information