Suppose people only consume 3 different goods. The following table shows the prices and quantities of...

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Suppose people only consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2006, 2007, and 2008 quamuits un taun good consumicu in 2006, 2007, an 20. Year Price of Price of Quantity of Fish Fish Pork $7 400 $8 $8. 550 $7 $9 900 $6 2006 2007 2008 a. Calculate nominal GDP in each of the three years. b. Calculate Real GDP in each of the three years, using 2006 as the base year. c. Calculate the GDP deflator for each of the three years. d. Calculate inflation for 2007 and 2008. e. Calculate Real GDP for 2007 and 2008 using the chain-weighted method. Quantity of Pork 225 250 275 g. Using the CPI calculate inflation. Price of Beef $10 $12 $15 f. Using the quantities from 2006 for your market basket, and 2006 as your base year, calculate the CPI for 2006, 2007 and 2008. Quantity of Beef 175 275 275 h. Recalculate CPI and inflation using the 2006 quantities for your market basket but with 2008 as your base year. i. Now calculate CPI and inflation using 2008 quantities as your market basket and 2006 as your base year. Suppose people only consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2006, 2007, and 2008 quamuits un taun good consumicu in 2006, 2007, an 20. Year Price of Price of Quantity of Fish Fish Pork $7 400 $8 $8. 550 $7 $9 900 $6 2006 2007 2008 a. Calculate nominal GDP in each of the three years. b. Calculate Real GDP in each of the three years, using 2006 as the base year. c. Calculate the GDP deflator for each of the three years. d. Calculate inflation for 2007 and 2008. e. Calculate Real GDP for 2007 and 2008 using the chain-weighted method. Quantity of Pork 225 250 275 g. Using the CPI calculate inflation. Price of Beef $10 $12 $15 f. Using the quantities from 2006 for your market basket, and 2006 as your base year, calculate the CPI for 2006, 2007 and 2008. Quantity of Beef 175 275 275 h. Recalculate CPI and inflation using the 2006 quantities for your market basket but with 2008 as your base year. i. Now calculate CPI and inflation using 2008 quantities as your market basket and 2006 as your base year.

Answer rating: 100% (QA)

a Nominal GDP in each year 2006 Fish 7 275 1925 Pork 8 225 1800 Beef 10 400 4000 Total 1925 1800 400... View the full answer