product 2020 QUANTITY 2020 PRICE 2021 QUANTITY 2021 PRICE $

beer 1 4 2 5

chocolate 3 7 6 8

Using 2020 as the base year answer the following questions:

a. What was the nominal GDP in 2020 and 2021?

b. What was the real GDP in 2020 and 2021?

c. What was the GDP deflator in 2020 and 2021?

d. What was the growth rate of nominal GDP between 2020 and 2021?

What was the growth rate of real GDP between 2020 and 2021?

What was the growth rate of the GDP deflator between 2020 and 2021?

e. Calculate the value of the basket in 2020 and 2021.

f. Calculate the CPI for 2020 and 2021

g. Calculate the annual inflation rate over the 2020-2021 period.

h. (This part is OPTIONAL in case you want more practice, this type of question is usually on the final exam :-)

Change your base year from 2020 to 2021. Re-do your answers to parts a, b, and c.