Suppose the following table records the total output and prices of rice and gasoline for an entire economy. This economy produces rice and gasoline only. Further suppose the base year is 2015. Rice Gasoline Year Price Quantity Price Quantity 2015 $8.00 500 $2.00 2000 2016 $9.00 600 $2.30 2000 2017 $10.00 600 $3.00 1800
Suppose the following table records the total output and prices of rice and gasoline for an entire economy. This economy produces rice and gasoline only. Further suppose the base year is 2015.
|
|
Rice |
|
Gasoline |
||
|
Year |
|
Quantity |
|
Price |
Quantity |
|
2015 |
$8.00 |
500 |
|
$2.00 |
2000 |
|
2016 |
$9.00 |
600 |
|
$2.30 |
2000 |
|
2017 |
$10.00 |
600 |
|
$3.00 |
1800 |
(1) Compute nominal GDP for 2015, 2016, and 2017.
(2) Compute real GDP for 2015, 2016, and 2017.
(3) Compute GDP deflator for 2015, 2016, and 2017.
(4) Calculate inflation rate from 2016 to 2017 using GDP deflator you calculated above. Write your calculation below:
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