Name: Md.

Shaman Abdullah Al Zami ID: 1612540030 sec: 17

Course ECO 101

Ans. to the question no: 1(a)

Nominal GDP of the year 2017= (1*100) + (50*2) = 200

Nominal GDP of the year 2018= (1*200) + (2*100) = 400
Nominal GDP of the year 2019= (2*200) + (4*100) = 800

Real GDP of the year 2017 = 200 (as this is the base year)
Real GDP of the year 2018 = (1*200) + (400*100) = 500
Real GDP of the year 2019 = (2*200) + (800*100) = 1200

So, GDP Deflator in 2017 = (Nominal GDP/Real GDP)2017 * 100

= (200/200)*100 = 100

So, GDP Deflator in 2017 = (Nominal GDP/Real GDP)2018 * 100

= (400/500)*100=80
So, GDP Deflator in 2017 = (Nominal GDP/Real GDP)2019 * 100
= (200/500) *100=40

Ans. to the question no: 1(b)

Inflation rate in 2017

= {(GDP deflator of 2017-GDP deflator of 2018)/ GDP deflator of 2018}*100
= {(100-100)/100}*100
=
Inflation rate in 2018
= {(GDP deflator of 2018-GDP deflator of 2019)/ GDP deflator of 2019}*100
= 100