Consider an economy that produces and consumes Bread and Automobile. Data for two different years 2005 and 2010 is given in the following table. Year 2005 2010 Price of Automobiles $ 5000 $ 6000 Price of a loaf of bread $10 $20 Number of automobiles produced 100 120 Number of loaves of bread produced 500,000 400,000 Using the year 2005 as a base year, a. Calculate the nominal and real GDP of 2010. b. Find the value of GDP Deflator for the year 2010 and interpret. c. Calculate the inflation rate in 2010.

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Q: real GDP

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A: The formula to calculate the GDP deflator is: GDP deflator=Nominal GDPReal GDP×100

Q: 2. Below are some data from the land of milk and honey: Year Quantity of Milk (Quarts) Price of…

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Q: The following table shows nominal GDP and an appropriate price index for a group of selected years.…

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Q: The fictional small country of Qbert has had a robust GDP the last few years. Dansbert produces just…

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