$\begin{array}{c}
Year &GDP& GDP~ deflator& Ponulation \
\hline
2000 & \$ 400 \text { billion } & 100 & 50 \text { million } \
2001 & \$ 600 \text { billion } & 120 & 60 \text { million }
\end{array}$
-Which statement is true?

Question

$\begin{array}{c}
 Year &GDP& GDP~ deflator& Ponulation \
\hline
2000 & \$ 400 \text { billion } & 100 & 50 \text { million } \
2001 & \$ 600 \text { billion } & 120 & 60 \text { million }
\end{array}$
-Which statement is true?

Quizplus · Accepted Answer

GDP in 2000 is $400 billion and in 2001 is $600 billion, showing a 50% increase. Real GDP for 2000 is $400 billion (since the GDP deflator is 100, making the base year and real GDP the same). For 2001, real GDP is calculated as ($600 billion / 120) * 100 = $500 billion, showing a 25% increase. Thus, nominal GDP rose at a faster rate than real GDP.

-Which Statement Is True? A)Real GDP Rose at a Faster

-Which Statement Is True?
A)Real GDP Rose at a Faster