Real GDP Growth Assessment

Consider the following scenario regarding a country's economy. In Year 1, the country experienced a nominal GDP growth of 8%, but inflation was 5%. In Year 2, the nominal GDP growth was reported at 10% with an inflation rate of 6%. Based on this information, what can be concluded about the country's real GDP growth over the two-year period?

To calculate real GDP growth, we adjust the nominal GDP growth for inflation, using the formula: Real GDP Growth = Nominal GDP Growth - Inflation Rate. Given the values provided, you need to assess how real GDP varies between Year 1 and Year 2 and decide which conclusion is supported by the calculations.