Questions: All questions are based on this table. YEAR OUTPUT PRICE GDP PRICE INDEX 5 $35 100 N $40 114.29 $45 4 10 $50 (a) Based on this table, which year is considered the Base or Reference year? GDP price index equals Nominal GDP/Real GDP* 100 and the Nominal GDP equals prices in the given year* quantity in the given year, and Real GDP equals the prices in the base year*quantity in the base year, which in this case during the base year, Nominal GDP equals Real GDP, and this implies that the GDP price index in base year is 100. (b) Calculate (Year3) GDP price index. The Nominal GDP in year 3 equals $45 9=$405 Real GDP in year 3= $35*9=$315 GDP price index in year 3=405/315*100=128.57 (c) if Nominal GDP in year 3 is $405, what is the Real GDP for Year 3? Please, you must use the formula below to calculate your answer. The Real GDP in the time of 3 years is $405/(128.57*100). Real GDP in 3 years is $315 Real GDP Year 3 = Nominal GDP (Yr.3) + GDP price index Yr.3 (in hundredths)