Problems
Problem 1.1:
Figure BD.1: Goods and Services Consumed in Country B
Compute the inflation in Country B from period 1 to period 2.
[Solution]
Problem 1.2:
Compute the inflation in Country B from period 1 to period 3.
[Solution]
Problem 1.3:
Compute the inflation in Country B from period 2 to period 3, using period as
the base year.
[Solution]
Problem 1.4:
Calculate the GDP deflator for Country B in year 3 using year 1 as the
base year.
[Solution]
Problem 1.5:
What is the rate of inflation from period 1 to period 3 in the previous
problem?
[Solution]
