Suppose a simple economy produces three goods only. The price and output data for some selected years are shown below.     Price (dollars) Price (dollars) Quantity (number) Quantity (number)   2002 2012 2002 2012 Pop Crackers Cucumbers 0.75 1.25 2.00 1.10 2.10 3.00 100 300 200 120 375 225   1) Assume that the reference base year is 2002 (CPI = 100)    a) What is the CPI (consumer price index) in 2012?     b) What is the nominal GDP in 2012?       c) What is the real GDP in 2012?

Here are values of the CPI (multiplied by 100) for each year from 1990 to 2000. For each year beginning with 1991, calculate the rate of inflation from the previous year. Instructions: Enter your responses rounded to one decimal place. Year CPI Inflation Rate (%) 1990 130.7 1991 136.2 1992 140.3 1993 144.5 1994 148.2 1995 152.4 1996 156.9 1997 160.5 1998 163.0 1999 166.6 2000 172.2

Using the Consumer Price Index (CPI) detailed in the table below, Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 CPI 130.7 136.2 140.3 144.5 148.2 152.4 156.9 160.5 163.0 166.6 172.2 177.1 179.7 184.0 188.9 Instructions: Round your responses to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Calculate the inflation rate for 2007-2008: 2008-2009: 2014-2015: 2015-2016: Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % % % % CPI 195.3 201.6 207.3 215.3 214.5 218.1 224.9 229.6 233.0 236.7 237.0 240.0 245.1 251.1 255.7 b, c. Which years had inflation? Which years had deflation? In 2007-2008, there was (Click to select) ✓ In 2008-2009, there was (Click to select)

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