The answer to Solved Problem 2.2a includes the following statement: “Notice that because the prices of three of the four products increased between 2005 and 2012, for 2012 the value of real GDP is significantly less than the value of nominal GDP.”
Construct an example similar to the one in the problem for an economy with only four products. Show that it is possible to choose prices in 2012 so that although only one price increases, nominal GDP in 2012 is still greater than real GDP.