Table 1 shows nominal GDP and a price index. Real GDP is found by dividing nominal GDP by the price index expressed relative to 100.
| Period | Nominal GDP (£ billion) | Price index |
|---|---|---|
| 1 | 500 | 100 |
| 2 | 540 | 108 |
Using Table 1, what happened to real GDP between the two periods?
It fell to £460 billion, a fall of 8%
It remained at £500 billion, so growth was -0%
It rose to £540 billion, a rise of 8%
It rose to £583 billion, a rise of about 17%
189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.