Econ question...1000 points! for each correct answer?
In an economy with persistent inflation,
a. real GDP will grow faster than nominal GDP.
b. nominal GDP will grow faster than real GDP.
c. nominal and real GDP will grow at the same rate.
d. nominal and real GDP will both fall.
Answer:
B.
Real GDP will grow at g percent per year, and
Nominal GDP will grow at g+pi, where pi is the inflation rate
g+pi > g
I've reported you loser for point-gaming - we are not going to do your homework for you and we don't need your points
C.)nominal and real GDP will grow at the same rate.
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a. real GDP will grow faster than nominal GDP.
b. nominal GDP will grow faster than real GDP.
c. nominal and real GDP will grow at the same rate.
d. nominal and real GDP will both fall.
Answer:
B.
Real GDP will grow at g percent per year, and
Nominal GDP will grow at g+pi, where pi is the inflation rate
g+pi > g
I've reported you loser for point-gaming - we are not going to do your homework for you and we don't need your points
C.)nominal and real GDP will grow at the same rate.
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