Posted by Freddy on .
The task of my assignment was to calculate the Nominal GDP, given the GDP deflator and the Real GDP. This is what I got.
GDP Deflator Real GDP Nominal GDP
0.9 600 540
1.0 600 600
1.1 600 660
The second part of the question asks what is happening in terms of real growth in the economy? I am not sure what this mean, I only understood how to calculate. Can someone please help me with the second part of the question.
Real growth in the economy is measured by the change in real GDP, which in your example is zero.