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galben [10]
3 years ago
12

How much would Israel’s nominal GDP growth be next year if it experienced real GDP growth next year the same as its average over

the past 50 years, with an inflation rate of 3% and population growth of 1%?
Business
1 answer:
NNADVOKAT [17]3 years ago
8 0

Answer:

Nominal GDP growth = 7.25%

Explanation:

Given:

Inflation rate = 3%

Population growth = 1%

Note:

Growth rate in real GDP (Not given) = 3.25%

Find:

Nominal GDP growth

Computation:

Nominal GDP growth = Inflation rate + Population growth + Growth rate in real GDP

Nominal GDP growth = 3% + 1% + 3.25%

Nominal GDP growth = 7.25%

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