T AaBbCcDC AaBbCcDo AaBbCcDdE AaBbCc AaBbCcDdE AaBbCcDdE AaBbCcDdl AaBbCcDdEe Subtle E Emphasis Heading 1 Normal Strong Subtitle Title No Spacing dates. 3. Use the data below to answer the questions that follow. (Total marks = 15) Nominal GDP GDP Deflator Year (in billions of dollars) (base year = Year0) Year0 400 100.0 Year 500 115.0 Year2 800 140.0 a) What was the growth rate of nominal GDP (i) between Year0 and Yearl, and (ii) between Yearl and Year2? Show your work. (3 marks) b) What was the growth rate of the GDP deflator (i) between Year0 and Yearl, and (ii) between Yearl and Year2? Show your work. (3 marks) c) What was the real GDP in Year0 prices in (i) Year0, (ii) Yearl, and (iii) Year2? Show your work. (3 marks) d) What was the growth rate of real GDP (i) between Year0 and Yearl, and (ii) between Yearl and Year2? Show your work. (3 marks) e) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP (i) between Year0 and Yearl, and (ii) between Yearl and Year2? Explain. (3 marks) 4. Suppose that people in Slotsky country produce and consume pizza and pop as follows. (Total marks = 15) Pizza Pop Year Quantity Price Quantity Price Year 30 50 10 Year1 50 10 60 15 Year2 60 12 65 25 a) Calculate the consumer price index (CPI) in each year using Year0 as the base year. Show your work. (3 marks) b) Using your CPI in (a), what is the inflation rate in Yearl and Year2? Show your work. (3 marks) c) Calculate the GDP deflator in each year using Year0 as the base year. Show your work. (3 marks) 1) Using your GDP deflator in (c), what is the inflation rate in Yearl and Year2? Show your work. (3 marks) e) Is the inflation rate in Year2 the same in (b) and (d)? Explain why or why not