Assume the Inflation Rate in 2012 Is 1

question 16

Multiple Choice

Assume the inflation rate in 2012 is 1.3 percent.If the nominal GDP grew 3.5 percent and nominal wages grew 2.6 percent,what are the approximate real growth rates of GDP and wages?

• A)2.00%; 0.80%
• B)3.05%; 0.90%
• C)2.10%; 1.10%
• D)2.20%; 1.20%
• E)2.20%; 1.30%