3. Suppose the nominal Gross Domestic Product (GDP) and price index for Country B in 2020 and 2021 are as follows: Year Nominal GDP (RM
3. Suppose the nominal Gross Domestic Product (GDP) and price index for Country B in 2020 and 2021 are as follows: Year Nominal GDP (RM million) Price Index 2020 1,298 110 2021 1,788 145 (a) Based on the above information, compute the economic growth rate of Country B. (4 marks) ( b ) Discuss whether a growth in real GDP or nominal GDP would be more accurate to reflect the changes in the productive capabilities of an economy. (7 marks)
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