If GDP increases in nominal terms from $600 billion in 1994 to $780 billion in

1996 and the price index (1992=100) rises from 120 to 130, how much real growth

(in 1992 dollars) in GDP occurred between 1994 and 1996?

a) $100bb) $138.5bc) $150bd) $180b

answer: a

question: What is real growth and real growth rate? Is the result computed by price index always real growth? What is the relationship between real growth rate and price index?