Econland's economy produces tax returns and lectures: Tax Returns (q) Lectures (q) Tax Returns (p) Lectures (p) Year 1 Year 2 Year 3 150 40 100 250 300 15 110 150 400 20 120 175 (a) Calculate Nominal GDP in each year. Using year 2 as the base year, calculate real GDP for each year. (b) Calculate the GDP deflator for each year. (c) Calculate the yearly inflation rates using the GDP deflator. What is the average yearly inflation rate?
Econland's economy produces tax returns and lectures: Tax Returns (q) Lectures (q) Tax Returns (p) Lectures (p) Year 1 Year 2 Year 3 150 40 100 250 300 15 110 150 400 20 120 175 (a) Calculate Nominal GDP in each year. Using year 2 as the base year, calculate real GDP for each year. (b) Calculate the GDP deflator for each year. (c) Calculate the yearly inflation rates using the GDP deflator. What is the average yearly inflation rate?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 7PA
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![1. Econland's economy produces tax returns and lectures:
Tax Returns (q) Lectures (q) Tax Returns (p) Lectures (p)
Year 1
150
40
100
250
Year 2
300
15
110
150
Year 3
400
20
120
175
(a) Calculate Nominal GDP in each year. Using year 2 as the base year, calculate real GDP
for each year.
(b) Calculate the GDP deflator for each year.
(c) Calculate the yearly inflation rates using the GDP deflator. What is the average yearly
inflation rate?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8fafc0d-4010-4731-947f-15583ddb7f94%2F331cc02d-a1c1-4b18-b871-f54ee917017f%2Fz6nlxw8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Econland's economy produces tax returns and lectures:
Tax Returns (q) Lectures (q) Tax Returns (p) Lectures (p)
Year 1
150
40
100
250
Year 2
300
15
110
150
Year 3
400
20
120
175
(a) Calculate Nominal GDP in each year. Using year 2 as the base year, calculate real GDP
for each year.
(b) Calculate the GDP deflator for each year.
(c) Calculate the yearly inflation rates using the GDP deflator. What is the average yearly
inflation rate?
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