The following table lists hypothetical values.

a. Fill in column (4) by calculating real GDP using the GDP deflator with a base year of 2014 from column (3). Fill in column (7) by calculating real GDP using the GDP deflator with a base year of 2016 from column (6).
b. Fill in column (5) by calculating the annual percentage change in real GDP for each year, using the values from column (4), and fill in column (8) by calculating the annual percentage change in real GDP by using the values from column (7).
c. What effect does the change in the base year used to compute real GDP have on your calculations of the percentage changes in real GDP?

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(3) (4) (6) (7) GDP Real GDP Deflator GDP Real (5) (8) Deflator GDP (2) (base (base Percentage (base (base Percentage (1) Nominal year = year = Change in year = year = Change in 2014) 2014) Real GDP 2016) 2016) Real GDP %3D Year GDP 2012 $980.00 90 81.8 2013 1,020.00 83.6 92 2014 1,050.00 100 90.9 2015 1,200.00 105 95.5 2016 1,400.00 110 100.0