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An economy produces only two goods, oranges and VCRs. The quantities and prices for the years 1998 and 1999 are shown in the table. The
An economy produces only two goods, oranges and VCRs. The quantities and prices for the years 1998 and 1999 are shown in the table. The base year is 1998. 1998 1999 Price Quantity Price Quantity Oranges $2 5,000 $3 4,000 VCRS $400 1,000 $300 2,000 Calculate the following: The GDP deflator The growth rate of nominal GDP in 1999 (vii) The growth rate of real GDP in 1999 (viii) The rate of inflation in 1999
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