I have the first 4, so please answer the last 4 questions only: e, f, g, h.
Consider the following production data for an economy and answer the below questions:
Year P1 Q1 P2 Q2 P3 Q3
1* 1 89 10 95 7 74
2 1 89 12 102 9 75
3 1.25 84 11 110 10 80
Calculate nominal GDP for each year.
Given that year 1 is the base year, calculate real GDP for each year.
Calculate the rate of real economic growth in years 2 and 3.
For each year, calculate the GDP deflator.
Based on (d), calculate the rate of inflation for years 2 and 3.
Assume that the CPI basket contains 2Q1, 3Q2 & 1Q3, calculate the cost of the basket in each year.
Based on (f), construct a CPI using 1 as the index number.
Based on (g), calculate the rate of inflation for years 2 and 3.