In mid-2019, according to an article in the Wall Street Journal, “The central bank [of Mexico] expects gross domestic product will expand between 0.8% and 1.8% this year.”

a. Is it likely that the forecast the newspaper cited is of nominal GDP or of real GDP? Briefly explain. 

b. Given your answer to part (a), is per capita GDP likely to expand more quickly or more slowly than 0.8 percent to 1.8 percent? Briefly explain. 

c. Given your answers to parts (a) and (b), and assuming that the central bank’s forecast is accurate, is it likely that living standards in Mexico rose or fell in 2019? Briefly explain.