Consider a Melanesian island nation In the South Pacific, which had a population of 0.88 million in 2010. The table below presents the nominal GDP and the GDP deflator ( based on 2005 being the base year) for the years 2010, 2015 and 2020.

Year	2010	2015	2020
Nominal GDP ($millions)	17500	18222	18755
GDP Deflator	103.7	104.8	105.9

Over each 5-year period, there were no significant changes to government policies or capital investment, and the country experienced a net migration of 0%. However, over the first five years (2010 to 2015), the growth rate of births was 12.5% while the growth rate of deaths was 7.5%. This resulted in a 5% of population growth. Over the second five years (2015 to 2020), health care significantly improved such that the growth rate of births increased to 15% while the growth rate of death decreased to 5%.

The following table represents additional information for the Melanesian island nation:

Year	2010	2015	2020
Employment population ratio(%)	64	65	66

Questions: 1. What is the percentage change in real GDP per capita for the first five years? ( report your answer to 3 decimal places)

2.What is the percentage change in real GDP per capita for the second five years?( report your answer to 3 decimal place)

3.What is the real GDP per worker in 2010? (report your answer to 2 decimal place)

4.What is the real GDP per worker in 2015? (report your answer to 2 decimal place)

5.What is the real GDP per worker in 2020? (report your answer to 2 decimal place)

6.Describe the state of the economy over the decade, 2010 to 2020. ( complete the following paragraph)

The economy ________ over the decade. Specifically, the economic growth rate for the first five year was ________percent and for the second five years, it was______percent. Further analysis reveals that for the first five years, there was _________ in labor productivity and the average person experienced_______ ___ in their standard of living. For the second five years, there was__________ in labor productivity, and the average person experienced__________in their standard of living. Given the information provided, it is likely that over the decade, these observed changes in labor productivity and the average person's standard of living resulted from changes ___________. Furthermore, it is likely these changes led to_________ in aggregate demand and ____________in aggregate supply, and thus resulted in___________in the overall price level and __________in real output.

Answer choices:

Expanded

Receded

1.856

2.925

3.033

4.126

A decrease

An increase

No change

In net migration

In government policy

In the population

In nominal GDP

A negligible change

Had a mixture of expansion and recession

A mixture of increase and decrease in the

a decrease an increase in net migration in government policies in the population in nominal GDP expanded had a mixture of expansion and recession a mixture of increase and decrease in the no change receded a negligble change 1.856 2.925 3.033 4.126