Suppose That Nominal GDP in Year 1 Is 200 and Nominal

question 44

Multiple Choice

Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is ten percent per year. How fast did the economy grow between these two years?

• A) 10 percent
• B) 12 percent
• C) 21 percent
• D) 42 percent

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Definitions:

Grade Level

A stage or step in an educational curriculum, often used to describe the complexity or difficulty of educational content or the age group of students.

One Factor

A term usually associated with experimental design referring to a single variable that is changed or manipulated.

Factorial ANOVA

An ANOVA test used for multiple independent variables, assessing the effect of each and their interactions on the dependent variable.