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Below are some data from the land of milk and honey Year Price of Milk Quantity...

Below are some data from the land of milk and honey

Year Price of Milk Quantity of Milk Price of Honey Quantity of Honey
2013 (Base yr) $1 100 quarts $2 50 quarts
2014 $1 200 $2 100
2015 $2 200 $4 100

Compute nominal GDP, real GDP, and the GDP deflator for each year, using the information from the above table. The base year is 2013. Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6. Year 1 is the base year. What is nominal GDP for each of these three years? What is real GDP for each of these years? What is the GDP deflator for each of these years? What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate as measured by the GDP deflator from year 2 to year 3?

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Rahul Sunny answered 1 year ago
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