Year	Nominal GDP	Real Potential GDP(2005)	GDP deflator – Base year 2005
2013	9.269	7730	113
2014	9.873	10145	118

Calculate real GDP in 2013 and 2014 respectfully

Calculate the growth in % of nominal GDP between 2013 and 2014

Calculate the growth in % of real GDP between 2013 and 2014

Explain the difference between the growth of nominal GDP and the growth of real GDP

Cal the output gap in 2013 and 2014 (in %) and state whether the output gap was recessionary of inflationary

Answer rating: 100% (QA)

To calculate the real GDP in 2013 and 2014 we need to use the GDP deflator and the nominal GDP value... View the full answer