If the Percent Change in Nominal GDP Is 5 Percent

question 140

Multiple Choice

If the percent change in nominal GDP is 5 percent and inflation is 3 percent, the percent change in real GDP is:

• A)0 percent.
• B)2 percent.
• C)8 percent.
• D)15 percent.

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Definitions:

Absolute Value

A mathematical function that measures the distance of a number from zero on the number line, denoted as |x|, regardless of direction.

Evaluate

To calculate the value of an expression by substituting the values of the variables and performing the operations.

Algebraic Expression

A combination of numbers, variables, and arithmetic operations that represents a mathematical phrase.

Simplify

The process of making an expression easier to understand by reducing it to its most basic form.