9. The GDP deflator in Econoland is 200 on January 1, 2010. The deflator rises to 242 by January 1, 2012, and to 266.2 by January 1, 2013.

a. What is the annual rate of inflation over the two-year period between January 1, 2010 and January I, 2012? In other words, what constant yearly rate of inflation would lead to the price rise observed over those two years? 'b. Whatisthe annual rate of inflation overthe three-year period from January 1, 2010 to January 1, 2013? ¢. In general,if Pp is the price level at the beginning of an n-yearperiod, andP,, is the price level at the end of that period, show that the annual rate of inflation +t over that period satisfies the equation (1+ a)" = Py/Po)