Topic 2.6- Real v. Nominal GDPpdf AP Macro Topic 2.6 Real v. Nominal GDP Part 1. Check Your Understat It your nominal vage have a 25 % Increase in purchasing power? Why or why not? 2. If your nominal wage rises from $ 0 to $12 while the CPI nses from 150 to 180 will your real wage Increase, decrease, or stay the same? Explain! If nominal GDP increases by 20%, and inflation increased by 1014) will the real GDP Increase decrease, or stay the same? Explain? Assume that the nominal GOP is $60 bilion and the real GDP is $40 billion, Calculate the GDP deflator. Show your work 5. Assume that the nominal GDP is $70 button and the GDP deflator is 140. Calculate the real GDP Show your work- Part 2: Practice- Use the GOP data provided to answer the questions Year. Population. GDP Deflator Nominal GDP 2019 180 $8.060 2020 200 120 $12.000 2021 300 $ 15.000 6. Calculate the real GDP in Year 2020. Snow your work 7- Calculate the GDP deflator in Year 2021 Il the real GDP : $12.000. Show your work. 8. Calculate the rate of real output growth between 2019 and 2020. Show your work 9. Calculate the real GDP per capita in Year 2020. Shon your work. 10. Calculate the real GDP per capita in year 2021. Show your work 1 1. Assume that the real GDP in Year 2022 is $8000 and the GDP deflator is 200. Calculate the Nominal GDP. Show your work! Part 3 - Stretch Your Thinking- Answer the question 2. Over time, the CPI tends to estimate higher rates of inflation than the GDP deflator. Identity one reason why this occurs