Using data in the following table: a. Compute nominal GDP in each year. b. Compute real GDP in each year using 2006 as the base year. c. Compute the GDP deflator in each year. d. Use GDP deflator to compute the inflation rate from 2006 to 2007 and from 2007 to 2008. 2006 2007 2008 P good A $30 900 $31 1,000 $36 1,050 good B $100 192 $102 200 $100 205

Using data in the following table: a. Compute nominal GDP in each year. b. Compute real GDP in each year using 2006 as the base year. c. Compute the GDP deflator in each year. d. Use GDP deflator to compute the inflation rate from 2006 to 2007 and from 2007 to 2008. 2006 2007 2008 P good A $30 900 $31 1,000 $36 1,050 good B $100 192 $102 200 $100 205

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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