510PART EIGHTTHE DATA OF MACROECONOMICSa.Compute nominal GDP, real GDP, and the GDPdeflator for each year, using 2001 as the base year.b.Compute the percentage change in nominal GDP,real GDP, and the GDP deflator in 2002 and 2003from the preceding year. For each year, identify thevariable that does not change. Explain in wordswhy your answer makes sense.c.Did economic well-being rise more in 2002 or 2003?Explain.6.Consider the following data on U.S. GDP:NOMINALGDP GDP DEFLATORYEAR(IN BILLIONS)(BASE YEAR1992)19967,66211019978,111112a.What was the growth rate of nominal GDP between1996 and 1997? (Note: The growth rate is thepercentage change from one period to the next.)b.What was the growth rate of the GDP deflatorbetween 1996 and 1997?c.What was real GDP in 1996 measured in 1992prices?d.What was real GDP in 1997 measured in 1992prices?e.What was the growth rate of real GDP between1996 and 1997?f.Was the growth rate of nominal GDP higher orlower than the growth rate of real GDP? Explain.
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