Compute the gdp price index for each year if quantity of

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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?

Reference no: EM13456572

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