Suppose that the economy's real GDP was $10000 in 2015. Moreover, inflation rate was 25% and the growth rate of real GDP was 10% between 2015 and 2016. Using2016as the baseyear, what are the values of this economy's (a) real GDP in 2016, (b) GDP price index in 2015, and(c) nominal GDP in 2015?

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To calculate the values of real GDP in 2016 the GDP price index in 2015 and nominal GDP ... View the full answer