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Chapter 9: Q. 11 (page 210)

Between the start of 2018 and the start of 2019 , a country's economic growth rate was4 percent. Its population did not change during the year, nor did its price level. What was the rate of increase of the country's nominal GDP during this one-year interval?

Short Answer

Expert verified

There is no change in rate during one year interval.

Step by step solution

01

Introduction

The nominal GDP, often known as the current dollar GDP, is a macroeconomic estimate of the worth of goods and services based on current prices.

Adjustments for changes in inflation are factored into real GDP.

02

Explanation

When there is no change in the price level in a country, the nominal GDP equals the real GDP. Nominal GDP was deflated to produce real GDP.

As a result, with no inflation, real and nominal GDP would be the same.

As a result of these factors and the current economic growth rate, nominal GDP growth would likewise be 4percent.

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Most popular questions from this chapter

Why do you suppose that nations with higher degrees of measured distrust of strangers tend to observe lower rates of economic growth, other things being equal?

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