Question

Suppose that nominal GDP was $10000000.00 in 2005 in Orange County California. In 2015, nominal GDP was $12000000.00 in Orange County California. The price level rose 1.50% between 2005 and 2015, and population growth was 3.50%. Calculate the following figures for Orange County California between 2005 and 2015. a. Nominal GDP growth was %.

Answer 1

Answer:

50%

Explanation:

Here is important to know that when we have the inflation rate (1,50% in this case) this indicator is enough to get the effect of the prices in an economy and get the nominal GDP affected by prices, so if the price level is 1,50% after the comma we have the average of the growth.