Question One

The table below shows data for Surf City - an independent nation which produces only umbrellas and beer. Suppose 2018 is the base year. Umbrellas Beer Year Price Quantity Price Quantity 2018 $20 100 $4 125 2019 30 150 5 140 2020 20 50 8 200 a) Calculate Nominal GDP for 2019 and 2020. 2019 2020 b) Calculate the CPI for 2019 and 2020. 2019 2020 c) Calculate the rate of inflation in 2020. (hint: % change from the previous year}