Variant 2. Theme: Gross Domestic Product and Product Accounts Task 1: Use the following data to work Problems a) and b) The national accounts of Parchment Paradise are kept on (you guessed it) parchment. A fire destroys the statistics office. The accounts are now incomplete but they contain the following data: GDP (expenditure approach): $2 730 Compensation of employees: $390 Indirect taxes less subsidies: $75 Net interest: $510 Gross Private Investment: $730 Government expenditure: $310 Rental income: $165 Net exports: -$98 Corporate profits: $620 Proprietors' income: $225 Net Investment: $245 a) Calculate National Income and depreciation. b) Calculate GDP (income approach) and the statistical discrepancy. Task 2: In 2001 the Nominal GDP = $120 billion and Real GDP = $135 billion. Calculate the GDP deflator for this economy in 2001. Task 3: We have the following data on nominal GDP and the real GDP for 2002 and 2003: 2004 2005 Nominal GDP $ 132billion $ 137 billion Real GDP (base year $ 129 billion $ 134 billion 1998 Calculate the GDP deflator for 2004 and 2005 and also calculate the annual inflation rate in the GDP deflator