Neco Model Questions Vol1 2019 Economics Question 14
Practice objective / multiple choice question 14 from the 2019 Neco Model Questions Vol1 Economics examination.
In 2020 the nominal GDP of a country was \(\N{₦}2{,}500\) billion and the GDP deflator was 125. In 2021 nominal GDP rose to \(\N{₦}2{,}800\) billion and the deflator became 130. (a) Compute the real GDP for each year. (b) Determine the inflation rate between 2020 and 2021 using the GDP deflator. (c) If the nominal interest rate in 2021 was 12\%, what was the real interest rate that year (using the Fisher approximation)?
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About This Question
This is Neco Model Questions Vol1 2019 Economics Question 14. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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