I am not sure how to solve 25, I think it's B but I feel like that might be wrong. I think for sure 26 is B and I don't think I can solve the GDP deflators without answering those questions first. I am also confused as to how to solve the GDP deflators even though I know the equation is Nominal GDP/Real GDP times 100. Product2011QuantityPrice100$12502020045A very simple economy produces three goods: cameras, legal services, and books. The quantitiesproduced and their corresponding prices for 2011 and 2016 are shown in the table above.Table 18CameraLegal servicesBooksPrice$1015402016Quantity12045210 25) Refer to Table 18. What is real GDP in 2016, using 2016 as the base year?A) $28,885B) $11,790C) $11,200D) $10,27526) Refer to Table 18. What is nominal GDP in 2016 when 2011 is the base year?A) $28,885B) $11,790C) $11,200D) $10,27527) Refer to Table 18. What is the GDP deflator in 2016 if 2016 is the base year?A) 120B) 118C) 100D) 8728) Refer to Table 18. What is the GDP deflator in 2011 if 2016 is the base year?A) 187B) 87C) 8.7D) 0.87

DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for you as per our guidelines. If you want any specific question to be solved then please specify the question number or post only that question.” Nominal GDP calculates output utilizing current prices, but real GDP calculates output utilizing constant prices. Nominal GDP is the GDP without any effect of inflation. Real GDP is the inflation-adjusted GDP of a nation. The Nominal GDP of a nation is expressed in terms of current-year prices of products and services. 25) Calculating Real GDP (2016) by using the base year 2016 => quantity2016 * priceBase year => (120*12) + (45*20) + (210*45) = 1440+900+9450 Real GDP in 2016 = $11790 26) Calculating Nominal GDP2016 => Current year quantity * Current year price => (120*12) + (45*20) + (210*45) = 1440+900+9450 Nominal GDP in 2016 = $1179027) GDP deflator2016 = (Nominal GDP of 2016 ÷ Real GDP of 2016 ) * 100 = (11,790 / 11,790) * 100 = 1 * 100 = 100 Thus, the GDP deflator is 100