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BC200407151 Malik Asif Mehmood ECO403 Assignment # 1 Question # 1
BC200407151 Malik Asif Mehmood ECO403 Assignment # 1 Question # 1
Solution:
a) Nominal GDP for year 2021:
Nominal GDP
GDP Deflator = ×100
Real GDP
82,900
= ×100
74 , 000
= 1.120 × 100
= 112.02 % Ans
QUESTION # 2
Calculate the cost of basket, Consumer Price Index (CPI), and inflation rate by using
information given in the table.
Solution:
2. a) CPI 2020
69,000
¿ ×100
69,000
= 69,000/69,000 x 100
= 100 Rs
b) CPI2021
82,900
¿ ×100
69,000
= 82,900 / 69,000 x 100
= 120.1 Rs
3. Inflation 2021
120.1−100
Inflation ¿ ×100
100
20.1
= ×100
100
= 0.201 x 100
= 20.1 % Ans