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During year 1 During Year 1, nominal GDP increased by 7% and real GDP increased by 3.5%. During Year 2, nominal GDP increased by 5%

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During year 1

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During Year 1, nominal GDP increased by 7% and real GDP increased by 3.5%. During Year 2, nominal GDP increased by 5% and real GDP increased by 4%. Based on these figures, and ignoring any other considerations, how did the rate of inflation change over the two periods? a) The rate of inflation was unchanged. O b) The rate of inflation fell. O c) The nominal rate of inflation increased. O d) The rate of inflation increased

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