The following question refers to the following price and output data over a five-year period for an economy that produces only one good.Assume that year 2 is the base year.

Units of Price

Year output per unit

1 16 $2

2 20 3

3 30 4

4 36 5

5 40 6

(a) If year 2 is the base year, give the price index for year 3.

(b) Give the nominal GDP for year4.

(c) What is the real GDP for year 4?

(d) Tell which years you would deflate nominal GDP and which years you would inflate nominal GDP in finding real GDP.