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Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 17

9708Economic growth

GDP of a country measured at current market prices was $1000bn in year 1. This had risen to $1100bn in year 2. Over the same period the general price level had risen by 5%. What has happened to real GDP?

  1. AReal GDP fell by approximately 5%.
  2. BReal GDP fell by approximately 10%.
  3. CReal GDP rose by approximately 5%.
  4. DReal GDP rose by approximately 10%.

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Correct answer: C. Real GDP rose by approximately 5%.

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