The table below illustrates some GDP data from the UK (measured in millions of pounds) over different years. Year Real GDP Nominal GDP 1996 1,243 ,709 392,900 2015 1,865,893 . Why is nominal GDP in 1996 much lower than real GDP in 1996? Explain. 2. What was the average annualized growth rate in real GDP between 1996 and 2016? Show how you derive your result. 3. If real GDP keeps growing at this average rate, what should be the real GDP in 2020'? Suppose that the British labor supply, where labor is measured in number of workers is an increasing function of the real wage. 13) 1. In order to discuss the positive relationship between E labor supply and the real wage, should you refer to the behavior of those on the intensive margin or those on the extensive margin (or both)? Explain in no more than three lines. Suppose that the equation of Y - real GDP - in the U.K. is given by: 1 3 Y=AKIN3 where A, K, and N measure, respectively, total factor productivity, the amount of capital, and the number of workers. 0) Suppose that employment falls by 2%. 1. Holding K and total factor productivity constant, what will the resulting percentage change in GDP be? Use the growth accounting equation (which you do not need to derive) to attain your result