Nominal vs. Real GDP Template- Using your completed Nom vs. Real GDP Template and the Nominal vs. Real GDP Template - Samples file posted to Moodle, answer the questions below.

1. Examine the data in Panel A of your Nominal vs. Real GDP Template. Is nominal GDP larger or smaller than real GDP? Explain why. Be specific. (Note that the base year for Real GDP is 2012.)
2. Open the "Nominal vs. Real GDP Template - Samples" posted to Moodle and click on the tab for 2019. Note in Panel A that nominal GDP is larger than real GDP. Explain why.
3. Copy the template below into your Word document. Fill in the middle rows with data from Panel B of your Nominal vs. Real GDP Template.
   1. Is the percentage change in nominal GDP smaller or larger than the percentage change in real GDP in your birth year? Explain.
   2. In words, what are the two reasons that nominal GDP increased (or decreased) between each pair of years? Be specific.
   3. Using addition, show how the two sources listed in 7ii contribute to the percentage change in nominal GDP in your birth year.
   4. Using the data in the template, compare the percentage rates of change in nominal GDP, real GDP, and the GDP Price Index over these time periods. Be specific.

% Change in % Change in GDP Price % Change in Real Nominal GDP = Index + GDP 1967 to 1968 9.4 = 4.3+ 4.9 1968 8.2 4.9 3.1 to 1969 2001 3.3 = 1.5+ 1.8 to 2002 2002 to 2003 4.80 2 2.8 2018 to 2019 4.1 1.8 2.3 2019 to 2020 -2.2 1.3 -3.4Nominal Vs. Real GDP Template Actual Computed Nominal GDP GDP Price Index Real GDP Nominal GDP Panel A GDP Price Index Real GDP (Table 1.1.5 (Table 1.1.4 (Table 1.1.6 row 1) row 1) row 1) 2001 10581.90 79.81 13263.40 10586.050 79.783 13258.200 2002 10929.10 81.01 13488.40 10927.0 81.000 13491.05 2003 11456.50 82.64 13865.50 11458.4 82.600 13,863.1 Percentage Rate of Change Panel B (Table 1.1.7 (Table 1.1.1 row 1) row 1) 2001-2002 3.3 1.5 1.7 3.2 1.5 1.8 2002-2003 4.80 2 2.8 4.8 2.0 2.8