Econland's economy produces tax returns and lectures: Tax Returns (q) Lectures (q) Tax Returns (p) Lectures (p) Year 1 Year 2 Year 3 150 40 100 250 300 15 110 150 400 20 120 175 (a) Calculate Nominal GDP in each year. Using year 2 as the base year, calculate real GDP for each year. (b) Calculate the GDP deflator for each year. (c) Calculate the yearly inflation rates using the GDP deflator. What is the average yearly inflation rate?

Econland's economy produces tax returns and lectures: Tax Returns (q) Lectures (q) Tax Returns (p) Lectures (p) Year 1 Year 2 Year 3 150 40 100 250 300 15 110 150 400 20 120 175 (a) Calculate Nominal GDP in each year. Using year 2 as the base year, calculate real GDP for each year. (b) Calculate the GDP deflator for each year. (c) Calculate the yearly inflation rates using the GDP deflator. What is the average yearly inflation rate?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 12PA

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