1. Tom told you " Australia's economic grew because nominal or market GDP in 2016 was 1.01 trillion, 2017 it was 1.11 trillion and 2018 it was 1.13 trillion".Upon checking, you found that in these three years Australia's GDP price deflator was 104.2, 105.7 and 109.8 respectively.Explain with numerical calculations if the statement is factually accurate.2 Marks

1. Explain the importance of real gross domestic product.1 Mark

1. How can price changes affect nominal gross domestic product?Explain.1 Mark

1. Explain four (4) reasons why real gross domestic product is not an accurate measure of the welfare of a nation.2 Marks

1. Explain two (2) variables, other than GDP, that can more accurately measure the welfare of a nation.