Question

Table 1.1.5. Gross Domestic Product
Line		2015		2016
		III	IV	I	II
1	Gross domestic product	18141.9	18222.8	18281.6	18436.5
2	Personal consumption expenditures	12356.9	12438.8	12498	12695.1
3	Goods	4043	4038.1	4008.7	4086
4	Durable goods	1364.7	1371.8	1366.6	1390.4
5	Nondurable goods	2678.4	2666.3	2642	2695.6
6	Services	8313.9	8400.6	8489.3	8609
7	Gross private domestic investment	3072.1	3059.9	3036.8	2973.6
8	Fixed investment	2995.3	2997.2	2994.8	2992.2
9	Nonresidential	2331.5	2311.3	2292.4	2294
10	Structures	508.5	487.8	486	479.3
11	Equipment	1099.7	1092.6	1066.3	1056.6
12	Intellectual property products	723.3	730.9	740.1	758.2
13	Residential	663.8	685.9	702.4	698.2
14	Change in private inventories	76.8	62.7	41.9	-18.6
15	Net exports of goods and services	-523.4	-520.9	-507.4	-495.5
16	Exports	2259.1	2211.7	2179	2206.8
17	Goods	1495.6	1448.3	1410.9	1437.8
18	Services	763.5	763.4	768.1	769
19	Imports	2782.5	2732.6	2686.3	2702.3
20	Goods	2284.1	2235	2185.7	2199.1
21	Services	498.4	497.7	500.7	503.2
22	Government consumption expenditures and gross investment	3236.3	3245	3254.3	3263.4
23	Federal	1225	1234	1233.8	1239.2
24	National defense	729.3	735.6	731.4	729.3
25	Nondefense	495.7	498.4	502.4	509.9
26	State and local	2011.3	2011	2020.5	2024.1

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Table 1.1.6. Real Gross Domestic +A1:F26Product, Chained Dollars
Line		2015		2016
		III	IV	I	II
1	Gross domestic product	16454.9	16490.7	16525	16570.2
2	Personal consumption expenditures	11255.9	11319.3	11365.2	11487.4
3	Goods	3932.6	3953.4	3964.7	4033.4
4	Durable goods	1512.4	1527.3	1524.9	1561.3
5	Nondurable goods	2451.3	2458.4	2471.1	2505.6
6	Services	7327.2	7369.8	7403.9	7460.5
7	Gross private domestic investment	2882.2	2865.4	2841.5	2769.9
8	Fixed investment	2794.5	2793.3	2786.7	2769
9	Nonresidential	2217.5	2198.8	2179.7	2174.8
10	Structures	453.4	435.1	435.2	425.8
11	Equipment	1085.7	1078.6	1052	1042
12	Intellectual property products	683.1	690.7	697.1	711.7
13	Residential	573.7	589.5	600.7	588.8
14	Change in private inventories	70.9	56.9	40.7	-12.4
15	Net exports of goods and services	-547.1	-566.6	-566.3	-562
16	Exports	2120.4	2105.8	2102	2108.1
17	Goods	1440.7	1423.8	1424.1	1430.3
18	Services	679.3	681.1	677.3	677.4
19	Imports	2667.6	2672.4	2668.2	2670.1
20	Goods	2197.4	2201.4	2194.1	2194.3
21	Services	468.2	469	471.9	473.6
22	Government consumption expenditures and gross investment	2894.4	2901.7	2913.2	2902.1
23	Federal	1112.7	1123	1118.7	1117.8
24	National defense	669	676.3	670.9	665.7
25	Nondefense	443.1	446.2	447.2	451.4
26	State and local	1779.9	1777.1	1792.6	1782.6
27	Residual	-49.2	-49.6	-46.5	-52.6

1.Why was the nominal GDP greater than real GDP in each of those quarters?

2.What was the percentage change in Nominal GDP for the most recent quarter compared to the previous quarter? What was the percentage change in real GDP for the two quarters?

3.What accounts for the difference in the two percentages?