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Attached.
Running Head: INTERMEDIATE ECONOMICS
Intermediate Economics
Name of Student
Institution affiliation
INTERMEDIATE ECONOMICS
2
Part One
a.
Nominal GDP using 2010 as base year.
Nominal GDP for 2010 = price Γ Quantity for each
= (500 Γ 1 + 3000 Γ 0.9 + 500Γ 300)
= 157,700
Nominal GDP for the year 2011
= price Γ Quantity
= (6000Γ1.2 + 4000Γ0.8 + 600Γ400)
=250,400
Real GDP in 2011
= (1Γ6000 + 0.9Γ4000 + 600Γ300)
=189, 600
b. GDP deflator in 2011
ππππππ πΊπ·π
Γ 100
π
πππ πΊπ·π
250 400
Γ 100
189 600
= 132.0675105
(250 400 β 189 600)
60800
189 600
Γ 100
= 32.06751055
= 32.1
INTERMEDIATE ECONOMICS
c.
3
Inflation Rate in 2011 base on quantities Consumed in 2010
250 400
157 ...