Real GDP in 2015 is $100b and real GDP in 2016 is $110b. In 2016, nominal GDP grows by 3%. What can you say about inflation rate? a. Not enough information to say anything b. Inflation is -7% c. Inflation is constant d. Inflation is 13% e. Inflation is 10

Real GDP in 2015 is $100b and real GDP in 2016 is $110b. In 2016, nominal GDP grows by 3%. What can you say about inflation rate? a. Not enough information to say anything b. Inflation is -7% c. Inflation is constant d. Inflation is 13% e. Inflation is 10

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 4.10P

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Question

Real GDP in 2015 is $100b and real GDP in 2016 is $110b. In 2016, nominal GDP grows by 3%. What can you say about inflation rate?

a. Not enough information to say anything

b. Inflation is -7%

c. Inflation is constant

d. Inflation is 13%

e. Inflation is 10%

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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