Those are the production numbers for 3 different years for country B (50pts)YearPrice of Bananas $Quantity of bananas kg.Price of backrubs $Quantity of backrubs11.0056.00521.0056.00732.00106.009Calculate real and nominal GDP for year 1, 2 and year 3 when base year is year 1.Compute inflation in country B from period 1 to period 2.Compute inflation rate from period 1 to 3Compute inflation rate from period 2 to 3Calculate GDP with Chain weighted method for period 3. Compare the result with the answer in part a.

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Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 33P: The index number representing the price level changes from 110 to 115 in one year and then from 115...

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Those are the production numbers for 3 different years for country B (50pts)

Year	Price of Bananas $	Quantity of bananas kg.	Price of backrubs $	Quantity of backrubs
1	1.00	5	6.00	5
2	1.00	5	6.00	7
3	2.00	10	6.00	9

Calculate real and nominal GDP for year 1, 2 and year 3 when base year is year 1.
Compute inflation in country B from period 1 to period 2.
Compute inflation rate from period 1 to 3
Compute inflation rate from period 2 to 3
Calculate GDP with Chain weighted method for period 3. Compare the result with the answer in part a.

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