year 2000              year 2005

price of an automobile                            $50,000                 $60,000

price of a loaf of bread                           $10                        $20

number of automobiles produced           100                        120

number of loaves of bread produced      500,000                 400,000

问题如下

1 using the year 2000 as the base year, compute nominal GDP in each year

2 using the year 2000 as the base year, compute  real GDP in 2005

3 using the year 2000 as the base year, compute the implicit deflater for GDP in 2005

4 using the year 2000 as the base year, compute  a fixed- weight price indes such as the CPI in2005

5 for the previous two questions , compute the inflation rate

6 suppose you are a senator writing a bill to index , Social Security and federal pensions. that is, your bill will adjust these benefits to offset changes in the cost of living. Will you use the GDP deflater or the CPI? why?