Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 10 bars and the price is Rs.400 per bar. In year 2, the quantity produced is 12 bars and the price is Rs.500 per bar. In year 3, the quantity produced is 15 bars and the price is Rs.600 per bar. Year 1 is the base year. What is the GDP deflator for year 2?  What is the GDP deflator for year 3?  What is the percentage growth rate of real GDP from year 2 to year 3?

Economics (MindTap Course List)
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ISBN:9781337617383
Author:Roger A. Arnold
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Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
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Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 10 bars and the price is Rs.400 per bar. In year 2, the quantity produced is 12 bars and the price is Rs.500 per bar. In year 3, the quantity produced is 15 bars and the price is Rs.600 per bar. Year 1 is the base year.

  1. What is the GDP deflator for year 2? 
  2. What is the GDP deflator for year 3? 
  3. What is the percentage growth rate of real GDP from year 2 to year 3?
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