3) In 2018, New Zealands nominal GDP was $291,264 million. Additionally, the CPI index value for 2018 was 1011. In 2019, nominal GDP rose to $306,721 million, with a CPI index value of 1026. The base period for the CPI (index value = 1000) was June 2017.

a) What was the growth rate of nominal GDP from 2018 to 2019? [Hint: any growth or inflation rate is simply the percentage change between two values.

b) Use the CPI index values to calculate New Zealands inflation rate from 2018 to 2019.

c) Use the nominal GDP values and the CPI index values to calculate real GDP for New Zealand in 2018 and 2019.

d) What was the growth rate of real GDP from 2018 to 2019?

e) Briefly explain why the growth rate of real GDP is lower than the growth rate of nominal GDP. [Hint: think about real versus. nominal values, and which of those contain price and/or quantity increases.]