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From 2011 to 2012, the country of Fredonia experienced a growth rate.pdf

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From 2011 to 2012, the country of Fredonia experienced a growth rate of Solution Answer: b) 3% Explanation: Economic Growth = %?Nominal GDP - %?Price level - %?population Economic Growth = -1.8% %?Nominal GDP = 2% %?population = 0.8% %?Price level = ? Substituting the above values in the formula, we get, -1.8% = 2% - %?Price level - 0.8% %?Price level = 2% - 0.8% + 1.8% %?Price level = 3% Here, %?Price level is nothing but inflation. Therefore, Inflation = 3%.

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From 2011 to 2012, the country of Fredonia experienced a growth rate of Solution Answer: b) 3% Explanation: Economic Growth = %?Nominal GDP - %?Price level - %?population Economic Growth = -1.8% %?Nominal GDP = 2% %?population = 0.8% %?Price level = ? Substituting the above values in the formula, we get, -1.8% = 2% - %?Price level - 0.8% %?Price level = 2% - 0.8% + 1.8% %?Price level = 3% Here, %?Price level is nothing but inflation. Therefore, Inflation = 3%

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  • 1. From 2011 to 2012, the country of Fredonia experienced a growth rate of Solution Answer: b) 3% Explanation: Economic Growth = %?Nominal GDP - %?Price level - %?population Economic Growth = -1.8% %?Nominal GDP = 2% %?population = 0.8% %?Price level = ? Substituting the above values in the formula, we get, -1.8% = 2% - %?Price level - 0.8% %?Price level = 2% - 0.8% + 1.8% %?Price level = 3% Here, %?Price level is nothing but inflation. Therefore, Inflation = 3%