Question

What is the implication of the convergence criteria for economic growth?
Group of answer choices

A)Real GDP growth is 3% and Nominal GDP growth is around 3%

B)Real GDP growth is around 3% and Nominal GDP growth is 5%

C)Real GDP growth is around 5% and Nominal GDP growth is 5%

D)Real GDP growth is 5% and Nominal GDP growth is 3%

Answer 1

Hi,

I hope you are doing well!

Question:

Answer:

A)Real GDP growth is 3% and Nominal GDP growth is around 3%

Convergence:

Convergence means the fact that two or more things, ideas, etc. become similar or come together or the act of converging and especially moving toward union or uniformity.

Real GDP: Real gross domestic product is a measurement of economic output that accounts for the effects of inflation or deflation.

Nominal GDP: It is opposite of real GDP and measurement of economic output without adjustment to remove the effects of inflation.

Thank You