If GDP rose by 5 percent per year and the GDP deflator rose by 4 percent per year,the percentage change in real GDP is

Name: If GDP rose by 5 percent per year and the GDP deflator rose by 4 percent per year,the percentage change in real GDP is
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Quizplus · Accepted Answer

The percentage change in real GDP is calculated by adjusting the nominal GDP growth rate (5%) for inflation, as measured by the GDP deflator (4%). The formula is: Real GDP Growth = Nominal GDP Growth - Inflation Rate. Therefore, 5% - 4% = 1%.

If GDP Rose by 5 Percent Per Year and the GDP