Fill-in the blanks of the following table and answer the following questions.

Year Nominal GDP $ Real GDP $ GDP Deflator

2005	2,000, 000	2,000,000	_____________
2006	2,310,000	___________	105

Find the GDP Deflator in year 2005.
Find the Real GDP in year 2006.
Which GPD matters, nominal or real GDP? Why?
Did the economy grow in year 2006? Why yes, why not?

Expert Solution

Rahul Sunny answered 2 years ago

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