In 1939, inflation in the United States was -1%, but at the same time, the country recorded a real GDP growth rate of 8%. What was the nominal GDP growth rate?
A)-2%
B)9%
C)8%
D)7%

Question

Quizplus · Accepted Answer

The nominal GDP growth rate is calculated by adding the real GDP growth rate to the inflation rate. Here, real GDP growth is 8% and inflation is -1%, so nominal GDP growth is 8% + (-1%) = 7%.

In 1939, Inflation in the United States Was -1%, but at the Same