Question

If real GDP grew at 3.5% last year and prices increased by 3% over the same time period then - the average consumer is better off. - the average consumer is worse off. - the average consumer is unaffected. - the average producer is unaffected. - the average producer is worse off.

Answer 1

Answer:

the average consumer is better off.

Explanation:

The real GDP increases meaning, the nominal icnrease in the GDP was higher than inflation. This means more product were produced, more income was placed into the factors. This makes the consumers better off

The producers are also benefit from an increase inthe GDP as they produce and sole more units.

Answer 2

The average consumer is better off