3. Suppose that a country's GDP is $1080 billion in 2020 and the GDP deflator is 120. If the reference year is 2012, what is the value of the economy's GDP in 2020 at 2012 prices? (2 marks)

4.Use the table below to answer the following question.

Table A

Suppose a simple economy produces three goods only.

The price and output data for some selected years are shown below. All prices shown are the prices in the specific year shown. Treat 2002 as the reference year.

Table A Suppose a simple economy produces three goods only. The price and output data for some selected years are shown below. All prices shown are the prices in the specic year shown. Treat 2002 as the reference year. Price Price Quantity Quantity (dollars) (dollars) (number) (number) 2002 2010 2002 2010 Pop 0.75 1.10 100 120 Crackers 1.25 2.10 300 280 Cucumbers 2.00 3.00 200 190 5. Calculate the inflation rate experienced in 2014 and 2015 given the CPI for each year below. (2 mark each) Year CPI (as of December Inflation rate (%) 31 of the year) 2013 102.5 Not applicable for 2013 2014 106.4 ? 2015 109.2