Use the data in the following table to calculate the GDP price index for each year (values are in billions of dollars).
|
Year
|
Nominal GDP
|
Real GDP
|
|
2002
|
10,470
|
10,049
|
|
2003
|
10,961
|
10,301
|
|
2004
|
11,713
|
10,704
|
|
2005
|
12,456
|
11,049
|
|
2006
|
13,247
|
11,415
|
a. Calculate the GDP price index for each year.
If the quantity of final goods and services produced decreased, could real GDP increase? Could nominal GDP increase? If so, how?