Can nominal growth rate be greater than real growth rate, and how so?

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Can nominal growth rate be greater than real growth rate, and how so?

2007-10-29 13:06:51 · 2 answers · asked by Anonymous in Social Science ➔ Economics

2 answers

Yes - and it usually is unless you have deflation. The Nominal Rate of Growth is the Real Growth + Inflation (this is related via the Fischer Equation). So if inflation is positive then yes, nominal growth will be larger than real growth.

2007-10-29 14:10:33 · answer #1 · answered by Rock R 3 · 0⤊ 0⤋

nominal growth rate = real growth rate + inflation rate

2007-10-29 13:30:19 · answer #2 · answered by meg 7 · 0⤊ 0⤋