When inflation is 4% and the real GDP growth rate is 2%,what is the spending growth rate?
A) -2%
B) 2%
C) 6%
D) 8%

Name: When inflation is 4% and the real GDP growth rate is 2%,what is the spending growth rate? A) -2% B) 2% C) 6% D) 8%
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Question

Quizplus · Accepted Answer

The spending growth rate, often referred to as the nominal GDP growth rate, is the sum of the real GDP growth rate and the inflation rate. Therefore, 2% (real GDP growth) + 4% (inflation) = 6%.

When Inflation Is 4% and the Real GDP Growth Rate