The table below contains information about the Canadian Economy, expressed in billions of Canadian Dollars (CAD). The numbers are shown in nominal prices (that is, they are not inflation-adjusted).

(a) Compute the nominal GDP per capita of Canada in 2012 and 2016. The population of Canada was 35 million (or 0.035 billion) in 2012 and 36.5 million (or 0.0365 billion) in 2016.

(b) To compute the real GDP per capita, we need to adjust the nominal GDP per capita for the increase in price level (inflation). Let us fix 2002 as the base year, that is, the price level (consumer price index) in 2002 is 100. It turns out that the price level in 2012 was 121. Using this information, compute the real GDP per capita in 2012 expressed in 2002 Canadian Dollars.

(c) The price level in 2016 was 128. Using this information, compute the real GDP per capita in 2016 expressed in 2002 Canadian Dollars. Did the real GDP per capita increase in Canada between 2012 and 2016?

(d) For each of the following events determine the immediate effect on the GDP in Canada (either no effect, increase in GDP, or decrease in GDP) and explain which factor making up the GDP is affected: (i) A Canadian company invests in the development of new computer software; (ii) A Canadian household imports a new car from Germany.