output and multiply by the price of output.) Widgets Gizmos and prices for years 2006 and 2007. (Hint: GDP, in its most basic form, is P x Q. You take the quantity of Year 2006 2007 Price $100 $110 Quantity Price $10 $12 1 1 Thingamajigs Quantity Price $5 $4 8 10 Quantity 4 5
output and multiply by the price of output.) Widgets Gizmos and prices for years 2006 and 2007. (Hint: GDP, in its most basic form, is P x Q. You take the quantity of Year 2006 2007 Price $100 $110 Quantity Price $10 $12 1 1 Thingamajigs Quantity Price $5 $4 8 10 Quantity 4 5
Chapter4: The Aggregate Economy
Section: Chapter Questions
Problem 6E
Related questions
Question
Answer question 10
![The economy of Grossmania produces three goods: Widgets, Gizmos, and Thingamajigs. The accompanying table shows
the output and prices for years 2006 and 2007. (Hint: GDP, in its most basic form, is P x Q. You take the quantity of
output and multiply by the price of output.)
Widgets
Gizmos
Year
2006
2007
Price
$100
$110
Quantity Price
$10
$12
1
1
Thingamajigs
Quantity Price
$5
$4
8
10
Quantity
4
5
10. What is the GDP deflator for 2007? What was the inflation rate between 2006 and 2007?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2dd81d9-0823-42a6-bd49-c62408f470c9%2F44c06dcf-203b-4a66-80f4-2e4b99fff231%2F4ycnfq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The economy of Grossmania produces three goods: Widgets, Gizmos, and Thingamajigs. The accompanying table shows
the output and prices for years 2006 and 2007. (Hint: GDP, in its most basic form, is P x Q. You take the quantity of
output and multiply by the price of output.)
Widgets
Gizmos
Year
2006
2007
Price
$100
$110
Quantity Price
$10
$12
1
1
Thingamajigs
Quantity Price
$5
$4
8
10
Quantity
4
5
10. What is the GDP deflator for 2007? What was the inflation rate between 2006 and 2007?
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