Consider the following data on Prices and Quantities of T-Shirts and Pajamas. 1. What was the growth rate of nominal GDP between 2016 and 2017? 2 Was the growth rate of real GDP higher or lower than the growth rate of nominal GDP? Explain. 3. Using 2015 as the base year, calculate the CPI for each year. (i). Calculate the inflation rate for 2015, 2016 and 2017.

Consider the following data on Prices and Quantities of T-Shirts and Pajamas. 1. What was the growth rate of nominal GDP between 2016 and 2017? 2 Was the growth rate of real GDP higher or lower than the growth rate of nominal GDP? Explain. 3. Using 2015 as the base year, calculate the CPI for each year. (i). Calculate the inflation rate for 2015, 2016 and 2017.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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