The percentage change in nominal GDP exceed that of real GDP in all the three years.
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year.
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Real GDP = (Nominal GDP / GDP deflator) x 100
Real GDP in year 1 : (21,000 / 100) x 100 = 21,000
Real GDP in year 2 : (21,650 / 103) x 100 = 20,932.04
Real GDP in year 3 : (22,495 / 105) x 100 = 21,423.81
Real GDP in year 4 : (23,280 / 108) x 100 = 21,555.56
Change in Real GDP in year 2: (20,932.04 / 21,000) - 1 = -0.32%
Change in Real GDP in year 3: (21,423.81 / 20,932.04) - 1 = 2.35%
Change in Real GDP in year 4: (21,555.56 / 21,423.81 ) - 1 = 0.61%
Change in Nominal GDP in year 2: (21,650 / 21,000) - 1 = 3.10%
Change in Nominal GDP in year 3: (22,495 / 21,650) - 1 = 3.90%
Change in Nominal GDP in year 4: (23,280 / 22,495) - 1 =3.49%
To learn more about GDP, please check: https://brainly.com/question/15225458
#SPJ1
