7. Consider the following data on Canadian GDP:

Year Nominal GDP (in billions)

GDP Deflator (base year 2007)

2013

$1893 111 2014

$1975 113

a. What was the growth rate of nominal GDP between 2013 and 2014? (Note: The growth rate is the percentage change from one period to the next.)

b. What was the growth rate of the GDP deflator between 2013 and 2014?

c. What was real GDP in 2013 measured in 2007 prices?

d. What was real GDP in 2014 measured in 2007 prices?

e. What was the growth rate of real GDP between 2013 and 2014?

f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.