Business

Devin Grant

9 September, 01:52

Year Units of Output Price Per Unit

1 3 $3

2 4 4

3 6 5

4 7 7

5 8 8

Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a five-year period are shown in the table. In determining real GDP, the nominal GDP for

each year must be multiplied by the relevant price index.

years 1 and 2 must be inflated.

years 4 and 5 must be inflated.

years 1 and 2 must be deflated.