macroeconomic

REAL GDP, NOMINAL GDP & GDP DEFLATOR: The country of Smalltown produces two goods: footballs and basketballs. Below is a table showing prices and quantities of output for three years: Year Price of Quantity of Price of Quantity of Footballs Footballs Basketballs Basketballs Year 1 $10 120 $12 200 Year 2 12 200 15 300 Year 3 14 180 18 275 a) Calculate the Nominal GDP for each year b) Calculate the Real GDP for each year c) Calculate the GDP Deflator for each year d) Calculate the inflation/deflation rate for Year 2 and Year 3