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.. The table below shows data gathered by the statistical authority for the nation of Amalia: GDP Deflator Year 200 1 January 2010 242 1

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.. The table below shows data gathered by the statistical authority for the nation of Amalia: GDP Deflator Year 200 1 January 2010 242 1 January 2012 266 1 January 2013 (a) Calculate the annual inflation rate across the 2-year period from 1 January 2010, and 1 January 2012? (3 points) (b) Calculate the constant yearly rate of inflation that would motivate the observed price rise over 1 January 2010, and 1 January 2012? (2 points) (c) Calculate the annual inflation rate across the 3-year period from 1 January 2010 to 1 January 2013? (2 points) (d) Po is the price level at the beginning of an n-year period and Pr is the price level at the end of the /period. Prove that the annual inflation rate (n) satisfies the equation (5 points) (1 + n ) =

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