**Problem : **

Figure %: Goods and Services Produced in Country C

**Problem : **
Using , calculate the real GDP for Country C in year
2, using year 1 as the base year.

**Problem : **

Using , calculate the GNP for Country C in year 3 if candy is produced by foreigners.

(20 X $1.50) = $30**Problem : **
Using , calculate the GDP deflator for year 2 using
year 1 as the base year.

Nominal GDP for year 2 = ($1 X 15) + ($2 X 12) = $39

Real GDP for year 2 = ($.50 X 15) + ($1 X 12) = $19.50

GDP deflator = (39 / 19.50) –1 = 1 = %100