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Mrrafil [7]
2 years ago
12

Between 2015 and 2016, the country of North Grogolia experienced a growth rate of -1.4%. If nominal GDP had increased by 3.1% an

d the population growth was recorded at 0.7%, then calculate the annual inflation rate in North Grogolia. Give your answer to one decimal.
Business
1 answer:
Aloiza [94]2 years ago
3 0

Answer: 3.8%

Explanation:

To calculate this you can use the Economic Growth Formula because price change is one of the components of the equation and as you may know, inflation is the change in Prices from one period to the next.

The Equation is,

Economic Growth = % Δ Nominal GDP – % Δ Prices – % Δ Population.

Making % Δ Prices the subject gives,

% Δ Prices = - Economic growth + % Δ Nominal GDP - % Δ Population

= - (- 1.4%) + 3.1% - 0.7%

= 1.4% + 3.1% - 0.7%

= 3.8%

The inflation rate is therefore 3.8%

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8 0
3 years ago
Knowing that a third party may use the information that Ray is providing, does Ray owe a duty of confidentiality to Onyx?
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7 0
3 years ago
Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and
barxatty [35]

Answer:

B; it offers an expected excess return of 1.8%

Explanation:

Here are the options :

A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%

to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM

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Security B would be considered because it has a higher excess return

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