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23. The next four questions refer to the following price and output data over a five-year period for an economy that produces only one good.

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23. The next four questions refer to the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Price per unit Year 1 2 3 $2 Units of output 16 20 30 36 40 4 5 6 (a) If year 2 is the base year, give the price index for year 3. (b) Give the nominal GDP for year 4. I (c) What is the real GDP for year 4? would (d) Tell which years you would deflate nominal GDP and which years you inflate nominal GDP in finding real GDP

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