Suppose that there are only 2 goods in the economy (denoted by A and B). We have yearly data on prices (p) and quantities produced (q) for each good…

Suppose that there are only 2 goods in the economy (denoted by A and B). We have yearly data on prices (p) and quantities produced (q) for each good for the period 2000-2002.A.      Compute the nominal GDP for each year

B.      Compute, for each year in the sample, the real GDP with base-year 2000.

C.      Compute the GDP deflator for each year in the sample, using 2001 as base year. Compute the corresponding inflation rate for each year.

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