22. Suppose hamburgers cost $1.20 last year and $1.32 this year, and the overall price index (the GDP deflator) rose from 110 last year to 120 this year.

How much will 1000 hamburgers contribute to this year's real GDP?

• $1,000 b) $1,100 c) $1,200 d) $1,320

23. If in 1994 nominal GDP is 540 and real GDP is 500, the price index for 1994 is

a) 100 b) 108 c) 140 d) not enough information to tell 5

24. Suppose the price index is 110 and a typical basket of goods and services costs $3,300. What would this typical basket have cost in the base year?

a) $30 b) $3,000 c) $3,630 d) not enough information to tell

25. If the CPI changes from 110 in 1993 to 120 in 1994, what is the rate of inflation?

a) less than 10% b) 10% c) more than 10% d) insufficient information to tell