Compute the growth rate of nominal GDP, GDP Deflator and real GDP between 1999 and 2000.
Consider the following data on US GDP
| Year |
Nominal GDP(in billions $) |
GDP Deflator(base year 1996) |
| 2000 |
9,873 |
118 |
| 1999 |
9,269 |
113 |
a.Illustrate what was the growth rate of nominal GDP between 1999 and 2000? (Note the growth rate is the percentage change from one period to the next).
b. What was the grwoth rate of the GDP deflator between 1999 and 2000?
c. What was the real GDP in 1999 measured in 1996 prices?
d. What was real GDP in 2000 measured in 1996 prices?
e.What was the growth rate of real GDP between 1999 and 2000?
f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain?