All AP Macroeconomics Resources
Example Questions
Example Question #1 : Gross Domestic Product
In a certain year, nominal gross domestic product grew by 8 percent. The inflation rate was 4 percent. Real gross domestic product for this year was _______.
Possible Answers:
grew by 12 percent
grew by 8 percent
grew by 4 percent
remained constant
Correct answer:
grew by 4 percent
Explanation:
Nominal GDP growth refers to the rate at which real GDP increases. To find real GDP growth (i.e. GDP growth that accounts for inflation), subtract the inflation rate from the nominal GDP growth rate.
In this case, the nominal GDP growth rate is 8 percent, and the inflation rate is 4 percent. Thus, the real GDP growth rate is 4%.
Robert
Certified Tutor
Certified Tutor
Daytona State College, Bachelor in Arts, Teaching English as a Second Language (ESL).
Anthony
Certified Tutor
Certified Tutor
University of Massachusetts-Boston, Bachelor in Arts, Economics. Lasell College, Masters in Business Administration, Business...
All AP Macroeconomics Resources
Popular Subjects
Reading Tutors in San Francisco-Bay Area, Biology Tutors in San Diego, SSAT Tutors in New York City, GRE Tutors in Atlanta, Math Tutors in Philadelphia, GRE Tutors in New York City, GMAT Tutors in Los Angeles, MCAT Tutors in Dallas Fort Worth, GRE Tutors in Philadelphia, SAT Tutors in Boston
Popular Courses & Classes
LSAT Courses & Classes in New York City, LSAT Courses & Classes in San Diego, GMAT Courses & Classes in Los Angeles, GMAT Courses & Classes in Miami, LSAT Courses & Classes in San Francisco-Bay Area, LSAT Courses & Classes in Philadelphia, GRE Courses & Classes in Washington DC, GRE Courses & Classes in San Diego, SSAT Courses & Classes in Denver, Spanish Courses & Classes in Chicago
Popular Test Prep
SAT Test Prep in Miami, ISEE Test Prep in Dallas Fort Worth, LSAT Test Prep in Miami, ACT Test Prep in Dallas Fort Worth, LSAT Test Prep in New York City, LSAT Test Prep in Los Angeles, LSAT Test Prep in Chicago, ISEE Test Prep in Los Angeles, LSAT Test Prep in San Francisco-Bay Area, GMAT Test Prep in Miami