3. Consider an economy that only produces mittens. In Year 1, 4000 pairs of mittens are producedand the price is $5 per pair. In the Year 2, 5000 pairs of mittens are produced and the price is $7per pair. In Year 3, 7000 pair of mittens are produced and the price is $9 per pair. Use Year 1 asthe base year.What is the nominal GDP for each year?What is the real GDP for each year?What is the GDP deflator for each year?What is the percentage growth rate of real GDP from year 2 to year 3?What is the inflation rate (as measured by the GDP deflator) from year 2 to year 3?

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3. Consider an economy that only produces mittens. In Year 1, 400 and the price is $5 per pair. In the Year 2, 5000 pairs of mittens per pair. In Year 3, 7000 pair of mittens are produced and the pr the base year. What is the nominal GDP for each year? What is the real GDP for each year? What is the GDP deflator for each year?

3. Consider an economy that only produces mittens. In Year 1, 400 and the price is $5 per pair. In the Year 2, 5000 pairs of mittens per pair. In Year 3, 7000 pair of mittens are produced and the pr the base year. What is the nominal GDP for each year? What is the real GDP for each year? What is the GDP deflator for each year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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