Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 20

In year 1, a country's real GDP was $500 billion. In year 2, nominal GDP rose to $577.5 billion and the prices increased by 5%. What is the real GDP in year 2?

1. A$4.76 billion
2. B$5 billion
3. C$476 billion
4. D$550 billion

As printed in the paper