Business, 12.10.2019 02:10 xonyemaa12

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 56.
year 1 is the base year.

a? what is nominal gdp for each of these three years?

b. what is real gdp for each of these years?

c what is the gdp deflator for each of these years?

d. what is the percentage growth rate of real gdp from year 2 to year 3?

e. what is the inflation rate as measured by the gdp deflator from year 2 to year 3?

f. in this one-good economy, how might you have answered parts (d) and (e) without ﬁrst answering parts (b) and (c)?

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Consider an economy that produces only chocolate bars. in year 1, the quantity produced is 3 bars an...

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