Consider the table belowYearFruit IndexFruit InflationReal GDPNominal GDPGDP DeflatorGDP Inflation200593.34x4757.404452.0093.58x2006100.00a5121.40d100.006.862007b3.975543.055784.05104.35e2008112.32cf6701.80113.608.87Based on the values of the table, what is the value of c? (Please round your answer to include 2 decimal places.)

Before finding the value of c, we need to find the value of b. b is the food index for the year 2007. Food inflation in 2007 = [Food index (2007) - Food index (2006) / Food index (2006)] *100 3.97 = (b - 100)*100 / 100 b = 103.97 Food inflation of 2008 (c) = [Food index (2008) - Food index (2007) / Food index (2007)] *100 c =[ (112.32 - 103.97) 103.97] *100 c = 835 / 103.97 c = 8.03 The food inflation for the year 2008 (c) is 8.03

Answered: Consider the table below Year Fruit…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Problem 1QTC

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Consider the table below

Year	Fruit Index	Fruit Inflation	Real GDP	Nominal GDP	GDP Deflator	GDP Inflation
2005	93.34	x	4757.40	4452.00	93.58	x
2006	100.00	a	5121.40	d	100.00	6.86
2007	b	3.97	5543.05	5784.05	104.35	e
2008	112.32	c	f	6701.80	113.60	8.87

Based on the values of the table, what is the value of c? (Please round your answer to include 2 decimal places.)

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