Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

In year 1, a country’s GDP at current market prices was $\$1000$bn. By year 2, this had increased to $\$1100$bn. Over that same period, the general price level increased by $5\%$. What change has occurred in real GDP?

  • AReal GDP fell by approximately $5\%$.
  • BReal GDP fell by approximately $10\%$.
  • CReal GDP rose by approximately $5\%$.
  • DReal GDP rose by approximately $10\%$.

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