Assume the Inflation Rate in 2016 Is 1

question 56

Multiple Choice

Assume the inflation rate in 2016 is 1.5%. If the nominal GDP grew 3.1% and nominal wages grew 2.0%, what are the approximate real growth rates of GDP and wages?

• A)1.0%; .4%
• B)1.1%; .5%
• C)1.2%; .5%
• D)1.4%; .9%
• E)1.6%; .5%