In the year 2017, the economy produces 100 loaves of bread that sell for $2 each. In the year 2018, the econ - omy produces 200 loaves of bread that sell for $3 each. Calculate nominal GDP, real GDP, and the GDP defla - tor for each year. (Use 2017 as the base year.) By what percentage does each of these three statistics rise from one year to the next?

The computations are shown below:

For year 2017

Nominal GDP = Current year Price * Current year quantity

= $2 * 100

= $200

Real GDP = Base year Price * Current year quantity

= $2 * 100

= $200

GDP Deflator = (Nominal GDP : Real GDP) * 100

= $200 : $200 * 100

= 100

For year 2018

Nominal GDP = Current year Price * Current year quantity

= $3 * 200

= $600

Real GDP = Base year Price * Current year quantity

= $2 * 200

= $400

GDP Deflator = (Nominal GDP : Real GDP) * 100

= $600 : $400 * 100

= 150

Now the percentage of each one is as follows

For Nominal GDP

= $600 - $200 : $200 * 100

= 200%

For real GDP

= $400 - $200 : $200 * 100

= 100%

For GDP deflator is

= $150 - $100 : $100 * $100

= 50%