(LO 3) The data in Table 4.18 shows the total output (a mixture of consumer, capital, and government services)

and the prices of each product for the distant country of Vindaloo. (All figures are in billions of dollars, and the base year is 2013.)

a) Complete the table, and answer the following questions (to one decimal place).

b) What is the value of nominal GDP in 2013? $ 2014? $

2015? $

c) What is the value of real GDP in 2013? $ 2014? $ 2015? $

d) What is the value of the GDP deflator in 2013? 2014? 2015?

e) What is the inflation rate (using the GDP deflator) in 2014? % 2015? %

f) Suppose that the representative consumer in Vindaloo buys five units of each consumer good. What is the cost of each bundle in 2013? $ 2014? $ 2015? $
g) Converting the cost of each bundle into a consumer price index, what is the value of the index in each year using 2013 as the base year?
2013: 2014: 2015:
h) What is the inflation rate using this price index?
2014: % 2015: %