Subject
Home
/
Business
/
Which of the Following Has the Highest Real GDP Growth? Nominal GDP Growth Rate of 8% Inflation Rate of 4% Nominal GDP Growth Rate of

Question

Which of the following has the highest real GDP growth? Nominal GDP growth rate of 8% inflation rate of 4% Nominal GDP growth rate of 6% inflation rate of 1% Nominal GDP growthirate of 11% inflation rate of 10%

Answer

4.6 (293 Votes)
Verificación de expertos
Jasmine Advanced · Tutor for 1 years

Answer

Nominal GDP growth rate of 17% and inflation rate of 10%.

Explanation

We are given the nominal GDP growth rates and inflation rates for three scenarios. The prevailing question is which of these scenarios yields the highest real GDP growth.Recall that the formula to calculate real GDP growth is: Applying this formula to each scenario:1. 2. 3. After analyzing all the calculated real GDP growth figures, it is apparent that the scenario with the Nominal growth rate of 17% and inflation rate of 10% results in the highest real GDP growth.