Question

Between the start of $2018$ and the start of $2019$ , a country's economic growth rate was$4$ percent. Its population did not change during the year, nor did its price level. What was the rate of increase of the country's nominal GDP during this one-year interval?

Short answer

There is no change in rate during one year interval.

Step-by-step solution

Introduction

The nominal GDP, often known as the current dollar GDP, is a macroeconomic estimate of the worth of goods and services based on current prices.

Adjustments for changes in inflation are factored into real GDP.

Explanation

When there is no change in the price level in a country, the nominal GDP equals the real GDP. Nominal GDP was deflated to produce real GDP.

As a result, with no inflation, real and nominal GDP would be the same.

As a result of these factors and the current economic growth rate, nominal GDP growth would likewise be $4$percent.