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\begin{tabular}{cccc}
Year & \begin{tabular}{c}
Nominal GDP \\
(Dollars)
\end{tabular} & \begin{tabular}{c}
Real GDP \\
(Dollars)
\end{tabular} & GDP Deflator \\
\hline 2020 & 350 & 350 & 100 \\
2021 & 700 & 350 & 200 \\
2022 & 1,400 & 700 & 200 \\
\hline
\end{tabular}

Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2021 and 2022 from the preceding year.

Percentage Change In...
\begin{tabular}{cccc}
Year & Nominal GDP & Real GDP & GDP Deflator \\
\hline 2021 & [tex]$\%$[/tex] & [tex]$\%$[/tex] & [tex]$\%$[/tex] \\
2022 & [tex]$\%$[/tex] & [tex]$\%$[/tex] & [tex]$\%$[/tex]
\end{tabular}

From 2020 to 2021, [tex]$\qquad$[/tex] did not change; and from 2021 to 2022, [tex]$\qquad$[/tex] did not change.

Comparing the changes in 2021 and 2022, economic well-being increased more in [tex]$\qquad$[/tex].



Answer :

GinnyAnswer
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.

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