Question: Below are nominal GDP and GDP deflators for four years. a. Calculate real GDP in each year. b. Did the percentage change in nominal GDP

Below are nominal GDP and GDP deflators for four years.

a. Calculate real GDP in each year.
b. Did the percentage change in nominal GDP exceed the percentage change in real GDP in any of the last three years listed?
c. In which year did society's welfare increase the most? L06

Year 2005 2006 2007 2008 Nominal GDP in billions S12,421.9 13,178.4 13,807.5 14,264.6 GDP Deflator 113.0 116.7 119.8 122.4

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