Assume an economy is producing only one product. Year 2 is the base year. Output and price data for a five-year period are given.

YEAR Units of Output Price Per Unit

1 4 4

2 5 5

3 7 8

4 9 9

5 10 10

If year 2 is chosen as the base year, then in determining real GDP, nominal GDP for:

Group of answer choices

year 1 must be inflated.

year 2 must be deflated.

years 1 and 2 must be deflated.

years 3, 4, and 5 must be inflated.