Question

Suppose Hyperpolis’s GDP increases by 15%, and its inflation rate is 12%, while Superpolis’s GDP increases by 6%, and its inflation rate is 3%. Assuming the population in both countries remained constant, which economy grew faster?

a. Hyperpolis’s growth rate is larger
b. Superpolis’s growth rate is larger
c. Both economies grew at the same rate
d. It is not possible to determine which economy grew faster

Answer 1

Both economies grew at the same rate.

Answer: Option C.

Step-by-step explanation:

Gross domestic product (GDP) is the fiscal estimation of every single completed great and administrations made inside a nation during a particular period. Gross domestic product gives a financial preview of a nation, used to appraise the size of an economy and development rate. Gross domestic product can be determined in three different ways, utilizing consumption, creation, or salaries.

Because of low unemployment and increment in compensation, there is an expansion in the buying intensity of individuals. This prompts an expansion sought after for products and enterprises, which prompts an expansion when all is said in done value levels. Henceforth Inflation will Increase because of an Increase in GDP.