1. The table below shows nominal GDP and the Price Index:
Year Nominal GDP (billions, $) Price Index
2013 1,400 100
2014 1,500 104
2015 1,550 105
2016 1,600 110
Calculate real GDP for each year.
a. In which year did the economy grow the most?
b. Did the economy experience a recession in any year over the years 2013-2016?
c. When, if ever, did the growth in real GDP ever exceed the growth in nominal GDP?