If NGDP is nominal GDP and P is the price level, which of the following can be used to calculate the growth of the real GDP?
A) percent change in NGDP - percent change in P
B) percent change in NGDP + percent change in P
C) percent change in NGDP $\times$ percent change in P
D) percent change in P + percent change in NGDP
E) percent change in P - percent change in NGDP

Question

Quizplus · Accepted Answer

The growth of real GDP can be calculated by subtracting the percent change in the price level (inflation) from the percent change in nominal GDP.

If NGDP Is Nominal GDP and P Is the Price ×\times×

If NGDP Is Nominal GDP and P Is the Price $\times$