Question:
Given a table of data comprising real GDP and its components over a number of years, compute compound annual percentage changes in real GDP (economic growth) and compute the shares in real GDP. Evaluate changes in economic growth.
Complete the table and answer the following questions:
What's the difference between real GDP and nominal GDP? How is inflation measured? Based on the table, what can you predict about the economic condition of this country? Please explain and justify your claims.
| Nominal Versus Real GDP (billions $) |
| Variable |
2000 |
2001 |
2002 |
| Nominal GDP |
$9,817.00 |
$10,128.00 |
$10,469.60 |
| Percent Change |
|
**** |
3.37 |
| Real GDP |
**** |
$9,890.70 |
$10,048.80 |
| Percent Change |
|
0.76 |
1.6 |
| GDP Deflator (Price changes) |
100 |
**** |
104.19 |
| Percent Change |
|
2.4 |
**** |
| in price (inflation) |