Variant 3. 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): $2 940 Compensation of employees: $520 Indirect taxes less subsidies: $93 Net interest: $490 Gross Private Investment: $810 Government expenditure: $420 Rental income: $205 Net exports: -$136 Corporate profits: $580 Proprietors' income: $240 Net Investment: $370 a) Calculate National Income and depreciation. b) Calculate GDP (income approach) and the statistical discrepancy. Task 2: In 1997 the Nominal GDP = $146 billion and Real GDP = $125 billion. Calculate the GDP deflator for this economy in 1997. Task 3: We have the following data on nominal GDP and the real GDP for 2002 and 2003: 2006 2007 Nominal GDP $ 152 billion $ 155billion Real GDP (base year $ 149 billion $ 148 billion 1998 Calculate the GDP deflator for 2006 and 2007 and also calculate the annual inflation rate in the GDP deflator