In year 1 the quantity produced is q1 and the price is p1


In year 1, the quantity produced is Q1 and the price is P1. In year 2, the quantity produced is Q2 and the price is P1. In year 2, the quantity produced is Q1 and the price is P2. In year 3, the quantity produced is Q3 and the price is P3. Year 1 is the base year. Answer the following questions in terms of these variables, and be sure to simplify your answer if possible.

A. What is nominal GDP for each of these years?

B. What is real GDP for each of these years?

C. What is the GDP deflator for each of these years?

D. What is the percentage growth rate of real GDP from year 2 to year 3?

E. What is the inflation rate as measured by the GDP deflator from year 2 or year 3?

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Econometrics: In year 1 the quantity produced is q1 and the price is p1
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