Economics (AS & A Level) · May / June 2026 · Paper 11 · Question 17

Nominal GDP of a country at current market prices was $1000bn in year 1. In year 2, its nominal GDP had risen to $1050bn. What happened to real GDP if the general price level had increased by 10% over the same period?

1. AReal GDP decreased by approximately 5%.
2. BReal GDP decreased by approximately 10%.
3. CReal GDP increased by approximately 5%.
4. DReal GDP increased by approximately 10%.

As printed in the paper