Chapter 22, Problem 15P

To determine

a.

Percentage change in production.

Introduction:

Gross domestic product (GDP) refers to the gross money value or gross market value of all the finished goods and the services produced by the normal resident and non resident people of the country that is within that particular within the borders of the country in an accounting year.

The overall increase in CPI, which is the weighted average of prices of all the goods and services, is known as inflation rate. Formula to calculate inflation rate is:

$\text{Inflation Rate}=\frac{\text{Price Index for Current Year}-\text{Price Index for Previous Year}}{\text{Price Index for Previous Year}}\times 100$

To determine

b.

Percentage change in prices.

To determine

c.

Nominal GDP.

To determine

d.

Real GDP.