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vichka [17]
3 years ago
12

Suppose Hyperpolis’s GDP increases by 15% and its inflation rate is 12%, while Superpolis’s GDP increases by 6% and its inflatio

n rate is 3%. Assuming the population in both countries remained constant, which economy grew faster?
Business
1 answer:
strojnjashka [21]3 years ago
7 0

Answer: c) Both economies grew at the same rate

Explanation:

The faster growing economy would be the one that saw a greater increase in Real GDP than the other.

Real GDP growth = Nominal GDP growth - Inflation growth.

Hyperpolis Real GDP growth = 15% - 12%

Hyperpolis Real GDP growth = 3%

Superpolis Real GDP growth = 6% - 3%

Superpolis Real GDP growth = 3%

<em>Both countries grew at the same rate of 3%. </em>

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