If the Percent Change in Real GDP Is 5% and Inflation

question 135

Multiple Choice

If the percent change in real GDP is 5% and inflation rate is 1%, what is the percent change in nominal GDP?

• A)0%.
• B)2%
• C)4%.
• D)6%.

---

Definitions:

Policies

Formal guidelines or rules that govern actions and decision-making within an organization.

Grapevines

Informal channels of communication within an organization, often based on rumor or gossip, which can spread information quickly but sometimes inaccurately.

Transfer Information

The process of conveying data, facts, or knowledge from one person, place, or entity to another.

Inefficiently

The act of using more resources or taking more time than necessary to achieve a specific outcome, indicating a lack of effectiveness or productivity.