Calculate real GDP for each of the five years in the table. The data below refer to Bigland. GDP figures are in billion dollars. Compute the annual growth rates that Bigland achieved.
When was Bigland in a recession? For which year is real GDP the same as nominal GDP? Why?
In 2008 – 9, nominal GDP increased, but real GDP fell (check that this is what your calculation
shows). Explain how this could have happened.
Year Nominal GDP GDP deflator
2007 86.22 96
2008 91.39 100
2009 94.32 102.5
2010 95.26 104
2011 98.12 105