computing real GDP and price index.
The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each compute whether you are inflating or deflating the nominal GDP data.
| Product Price |
Quality Demanded |
| $5 |
1 |
| 4 |
2 |
| 3 |
3 |
| 2 |
4 |
| Year Nominal GDP Billions, Price Index (1996 = 100) Real GDP, Billions |
| 1960 |
$527.40 |
22.19 |
$____ |
| 1968 |
911.5 |
26.29 |
$____ |
| 1978 |
2295.9 |
48.22 |
$____ |
| 1988 |
4742.5 |
80.22 |
$____ |
| 1998 |
8790.2 |
103.22 |
$____ |