1. GDP, Interest Rates The following table contains some data from the economy of country A that was sourced from the ce

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1 Gdp Interest Rates The Following Table Contains Some Data From The Economy Of Country A That Was Sourced From The Ce 1 (367.39 KiB) Viewed 16 times

1. GDP, Interest Rates The following table contains some data from the economy of country A that was sourced from the central bank of country A. Table 1: Annual Growth Rates of Selected Variables Variable nominal GDP real GDP 1970-1989 5.6 1990-2022 6.7 3.1 2.4 (a) Consider the data contained in the table, and the statement in italics below. Nominal GDP growth has increased in recent decades (from-1990) when compared to growth in earlier decades (pre-1990). This indicates that growth in the nation's income has in- creased in recent decades. Th is beneficial because growth in the nation's income improves people's welfare/happiness. Do you agree or disagree with this statement? Explain your reasoning. (3 marks) (b) Suppose that the nominal interest rate that the bank paid was 3% per year in the earlier period (pre-1990) and 4% in the recent period (from-1990). Do you think that the recent period was a better time to save with the bank than the earlier period? Explain. (3 marks)