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Business, 09.02.2021 01:00 skinman

Suppose that cars in year 2 are better than cars in year 1. That is, cars are of higher quality in year 2 in the sense that one car in year 2 is equivalent to 1.2 cars in year 1. How does this change your calculations of Nominal GDP, GDP Price Deflator, and inflation rate from year 1 to year 2 using fixed price real GDP using year 1 as the base year. Explain any differences.

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