Suppose nominal GDP for an economy rose from $120 billion in 2016 to $150 billion in 2017 and that the inflation rate over the same period was 5 percent.
-Refer to the information above to answer this question.By what percentage did nominal GDP increase between 2016 and 2017?

Question

Quizplus · Accepted Answer

The percentage increase in nominal GDP can be calculated by taking the difference between the two years' nominal GDP and dividing by the initial nominal GDP, then multiplying by 100:
[(150 billion - 120 billion)/120 billion] x 100 = 25%
Therefore, nominal GDP increased by 25% between 2016 and 2017.

Suppose Nominal GDP for an Economy Rose from $120 Billion