7. Problems and Applications Q7

Consider the following data on U.S. GDP:

Year	Nominal GDP	GDP Deflator
(Billions of dollars)	(Base year 2009)
2015	17,947	109.77
1995	7,664	75.32

The growth rate of nominal GDP between 1995 and 2015 was , and the growth rate of the GDP deflator between 1995 and 2015 was . (Hint: The growth rate of a variable Xover an N-year period is calculated as 100((XfinalXinitial)(1N)1)100finalinitial11)

Measured in 2009 prices, real GDP was billion in 1995 and billion in 2015. (Note: Select the answers closest to the values you compute.)

The growth rate of real GDP between 1995 and 2015 was .

The growth rate of nominal GDP between 1995 and 2015 was than the growth rate of real GDP