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Nominal GDP, real GDP, rate of inflation

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Suppose hamburgers cost 1.50 last year and 1.65 this year, and the overall price index (the GDP deflator )rose for 125 last year to 150 this year.
a. How much will 1,000 hamburgers contribute to this year's nominal GDP?
b. How much will 1,000 hamburgers contribute to this year's real GDP?
c. What was the rate of inflation during the past Year?

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Solution Preview

Suppose hamburgers cost 1.50 last year and 1.65 this year, and the overall price index (the GDP deflator )rose for 125 last year to 150 this year.

a. ...

Solution Summary

The expert calculates nominal GDP, real GDP, rate of inflation.

$2.19