Answer :
Let's compute the percentage changes in nominal GDP, real GDP, and the GDP deflator for the years 2021 and 2022.
### Step-by-Step Calculation:
#### For the Year 2021:
1. Nominal GDP Change (2021 from 2020):
[tex]\[ \text{Nominal GDP Change} = \left(\frac{\text{Nominal GDP in 2021} - \text{Nominal GDP in 2020}}{\text{Nominal GDP in 2020}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{700 - 350}{350}\right) \times 100 = \left(\frac{350}{350}\right) \times 100 = 1 \times 100 = 100.0\% \][/tex]
2. Real GDP Change (2021 from 2020):
[tex]\[ \text{Real GDP Change} = \left(\frac{\text{Real GDP in 2021} - \text{Real GDP in 2020}}{\text{Real GDP in 2020}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{350 - 350}{350}\right) \times 100 = \left(\frac{0}{350}\right) \times 100 = 0\% \][/tex]
3. GDP Deflator Change (2021 from 2020):
[tex]\[ \text{GDP Deflator Change} = \left(\frac{\text{GDP Deflator in 2021} - \text{GDP Deflator in 2020}}{\text{GDP Deflator in 2020}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{200 - 100}{100}\right) \times 100 = \left(\frac{100}{100}\right) \times 100 = 1 \times 100 = 100.0\% \][/tex]
#### For the Year 2022:
1. Nominal GDP Change (2022 from 2021):
[tex]\[ \text{Nominal GDP Change} = \left(\frac{\text{Nominal GDP in 2022} - \text{Nominal GDP in 2021}}{\text{Nominal GDP in 2021}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{1400 - 700}{700}\right) \times 100 = \left(\frac{700}{700}\right) \times 100 = 1 \times 100 = 100.0\% \][/tex]
2. Real GDP Change (2022 from 2021):
[tex]\[ \text{Real GDP Change} = \left(\frac{\text{Real GDP in 2022} - \text{Real GDP in 2021}}{\text{Real GDP in 2021}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{700 - 350}{350}\right) \times 100 = \left(\frac{350}{350}\right) \times 100 = 1 \times 100 = 100.0\% \][/tex]
3. GDP Deflator Change (2022 from 2021):
[tex]\[ \text{GDP Deflator Change} = \left(\frac{\text{GDP Deflator in 2022} - \text{GDP Deflator in 2021}}{\text{GDP Deflator in 2021}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{200 - 200}{200}\right) \times 100 = \left(\frac{0}{200}\right) \times 100 = 0\% \][/tex]
### Summary of Results:
[tex]\[ \begin{array}{cccc} \text{Year} & \text{Nominal GDP Change (\%)} & \text{Real GDP Change (\%)} & \text{GDP Deflator Change (\%)} \\ \hline 2021 & 100.0 & 0 & 100.0 \\ 2022 & 100.0 & 100.0 & 0 \\ \end{array} \][/tex]
### Interpretation:
- From 2020 to 2021, Real GDP did not change.
- From 2021 to 2022, the GDP Deflator did not change.
Comparing the changes in 2021 and 2022, economic well-being increased more in 2022, as there was a significant increase in Real GDP in that year.
### Step-by-Step Calculation:
#### For the Year 2021:
1. Nominal GDP Change (2021 from 2020):
[tex]\[ \text{Nominal GDP Change} = \left(\frac{\text{Nominal GDP in 2021} - \text{Nominal GDP in 2020}}{\text{Nominal GDP in 2020}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{700 - 350}{350}\right) \times 100 = \left(\frac{350}{350}\right) \times 100 = 1 \times 100 = 100.0\% \][/tex]
2. Real GDP Change (2021 from 2020):
[tex]\[ \text{Real GDP Change} = \left(\frac{\text{Real GDP in 2021} - \text{Real GDP in 2020}}{\text{Real GDP in 2020}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{350 - 350}{350}\right) \times 100 = \left(\frac{0}{350}\right) \times 100 = 0\% \][/tex]
3. GDP Deflator Change (2021 from 2020):
[tex]\[ \text{GDP Deflator Change} = \left(\frac{\text{GDP Deflator in 2021} - \text{GDP Deflator in 2020}}{\text{GDP Deflator in 2020}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{200 - 100}{100}\right) \times 100 = \left(\frac{100}{100}\right) \times 100 = 1 \times 100 = 100.0\% \][/tex]
#### For the Year 2022:
1. Nominal GDP Change (2022 from 2021):
[tex]\[ \text{Nominal GDP Change} = \left(\frac{\text{Nominal GDP in 2022} - \text{Nominal GDP in 2021}}{\text{Nominal GDP in 2021}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{1400 - 700}{700}\right) \times 100 = \left(\frac{700}{700}\right) \times 100 = 1 \times 100 = 100.0\% \][/tex]
2. Real GDP Change (2022 from 2021):
[tex]\[ \text{Real GDP Change} = \left(\frac{\text{Real GDP in 2022} - \text{Real GDP in 2021}}{\text{Real GDP in 2021}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{700 - 350}{350}\right) \times 100 = \left(\frac{350}{350}\right) \times 100 = 1 \times 100 = 100.0\% \][/tex]
3. GDP Deflator Change (2022 from 2021):
[tex]\[ \text{GDP Deflator Change} = \left(\frac{\text{GDP Deflator in 2022} - \text{GDP Deflator in 2021}}{\text{GDP Deflator in 2021}}\right) \times 100 \][/tex]
[tex]\[ = \left(\frac{200 - 200}{200}\right) \times 100 = \left(\frac{0}{200}\right) \times 100 = 0\% \][/tex]
### Summary of Results:
[tex]\[ \begin{array}{cccc} \text{Year} & \text{Nominal GDP Change (\%)} & \text{Real GDP Change (\%)} & \text{GDP Deflator Change (\%)} \\ \hline 2021 & 100.0 & 0 & 100.0 \\ 2022 & 100.0 & 100.0 & 0 \\ \end{array} \][/tex]
### Interpretation:
- From 2020 to 2021, Real GDP did not change.
- From 2021 to 2022, the GDP Deflator did not change.
Comparing the changes in 2021 and 2022, economic well-being increased more in 2022, as there was a significant increase in Real GDP in that year.
