A rise in oil prices has caused input prices to increase throughout the economy, causing nominal GDP to increase by 13%....
A rise in oil prices has caused input prices to increase throughout the economy, causing nominal GDP to increase by 13%. Meanwhile, the price level decreases by 2%. What is the real GDP growth rate during this period?
Homework Answers
Real GDP growth = Nominal GDP growth - Price level growth
= 13% - (-2%)
= 13% + 2%
= 15%
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A rise in oil prices has caused input prices to increase throughout the economy, causing nominal GDP to increase by 13%....
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