Use the following information to answer this question. If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is approximately equal to

A) - 10%.

B) 0%.

C) 10%.

D) 20%.

E) 30%.

Question

Chaim Perry

Business

24 May, 07:12

Use the following information to answer this question. If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is approximately equal to

A) - 10%.

B) 0%.

C) 10%.

D) 20%.

E) 30%.

+1

Answers (1)

Know the Answer?

Carson Waters · Answer 1

d) 20%

Explanation:

real gdp at t_1 = $100 trillion / 2.2

real gdp at t_2 = $120 trillion / 2.2

real gdp at t_2 / real gdp at t_1 - 1 = 20%

There is no need in using the old deflactor

Use the following information to answer this question. If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is approximately equal toA) - 10%.B) 0%.C) 10%.D) 20%.E) 30%.

Use the following information to answer this question. If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is approximately equal to

A) - 10%.

B) 0%.

C) 10%.

D) 20%.

E) 30%.