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hi, step by step explanations please, with explanations on what are the formulas, how the formulas is used , thanks (a) Calculate the total &

hi, step by step explanations please, with explanations on what are the formulas, how the formulas is used , thanks

(a) Calculate the total & annual % increase in nominal expenditure from 1996 to 2013

(b) Calculate the total & annual inflation from 1996 to 2013

(c) Calculate the total&annual increase in real consumption(realGDP)

(d) Compare the numbers in (a), (b) and (c) and explain the relations between them.

(e) Suppose a person's nominal income has been growing in line with the overall inflation rate. Over time, is this person: better off, worse off, or just as well off?

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Q16. Real & nominal calculations. Assume consumers only spend their money on three things: clothes, cars, and (rental) housing. The prices and outputs of the three goods in 1996 and 2013 are shown below. P clothing Yclothing Paar; Yam-R P housing Yhousing 1996 100 120 10 000 10 400 100 2013 49 150 11 200 10 636 100 (Note: the 'Y's in this question are made up, but the 'P's represent the actual nominal price movements in the UK between 1996 and 2013clothing declined in price by 51%, new cars went up by 12%. and rent went up by 59%.]1

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