Table 1 contains data for the rates of growth of nominal and real GDP and the rate of inflation for an economy in a given financial year.
Which one of the following combinations, A, B, C or D, shows the correct relationship between the three variables?
Table 1
| Nominal GDP growth | Real GDP growth | Inflation rate | |
|---|---|---|---|
| A | +2% | -1% | +4% |
| B | -3% | -1% | -1% |
| C | +1% | +4% | -3% |
| D | -2% | +2% | -5% |
Nominal GDP growth: +2%+2\%+2%, Real GDP growth: −1%-1\%−1%, Inflation rate: +4%+4\%+4%
Nominal GDP growth: −3%-3\%−3%, Real GDP growth: −1%-1\%−1%, Inflation rate: −1%-1\%−1%
Nominal GDP growth: +1%+1\%+1%, Real GDP growth: +4%+4\%+4%, Inflation rate: −3%-3\%−3%
Nominal GDP growth: −2%-2\%−2%, Real GDP growth: +2%+2\%+2%, Inflation rate: −5%-5\%−5%
187 exam-style questions on AQA A Level Economics 2.1 The measurement of macroeconomic performance, covering 2.1.1 The objectives of government economic policy, 2.1.2 Macroeconomic indicators, 2.1.3 Uses of index numbers, and 2.1.4 Uses of national income data (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.