Question: 7. (a) Compute real GDP for 2005 using average prices of 1995 as the base year. (On the inside covers of this book youll find

(a) Compute real GDP for 2005 using average prices of 1995 as the base year. (On the inside covers of this book you’ll find data for GDP and the GDP “price deflator” used to measure inflation.)

(b) By how much did real GDP increase between 1995 and 2005?

(c) By how much did nominal GDP increase between 1995 and 2005?

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