During year 1, a country had a real GDP of $500 billion. By year 2, nominal GDP had increased to $577.5 billion, while prices rose by 5%. What is the real GDP in year 2?
- A$4.76 billion
- B$5 billion
- C$476 billion
- D$550 billion
Economics 9708 · AS & A Level · National income statistics
During year 1, a country had a real GDP of $500 billion. By year 2, nominal GDP had increased to $577.5 billion, while prices rose by 5%. What is the real GDP in year 2?