If nominal GDP increases by 6%, the price level increases by 2% and the population grows...

Question

Question

If nominal GDP increases by 6%, the price level increases by 2% and the population grows by 1%, what is the rate of economic growth?

Answer 1

Answer #1

Rate of economic growth = % change in Nominal GDP - % change in Price level - % change in Population

= 6% - 2% - 1%

= 3%

Answer 2

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