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Gross Domestic Product Assignment | Homework For You

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December 5th, 2019

Consider the following information for a small economy, the Nominal GDP this year is $615 million and the Real GDP is $602 million. Potential GDP measured using the chained dollar approach is $ 605 million. The previous year the GDP deflator was 102. Please show your work and answer to two decimal places for any calculation.

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Homework For You

a. Calculate the GDP deflator

b. Calculate the annual inflation rate

c. Is the economy operating at or below the natural rate of unemployment? Explain in one sentence.

d. If the Real GDP was $ 615 in the previous year, in what part of the business cycle would you place this economy in the current year? Get Economics homework help today

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