Exercise 2: GDP and inflation Consider an economy that produces and consumes haircuts and cars. The next table contains data on two different years: 2000 2012 Price of a car $50000 $60000 Price of a haircut $10 $20 Number of cars 100 120 Number of haircuts 500000 400000 a) Compute the following indicators for each year using 2000 as your base year: nominal GDP, real GDP and the GDP deflator. b) How much did prices go up between 2000 and 2012? What has been the annual inflation rate