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Use the data in the following table to calculate the GDP price index for each year (values are in billions of dollars).
Year
Nominal GDP
Real GDP
2002
10,470
10,049
2003
10,961
10,301
2004
11,713
10,704
2005
12,456
11,049
2006
13,247
11,415
a. Calculate the GDP price index for each year.
If the quantity of final goods and services produced decreased, could real GDP increase? Could nominal GDP increase? If so, how?
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