1.

USA country with two goods are being produced: Hot dogs and Hamburgers:
a. Compute GDP deflator in 2016 – Assume that 2016 is base year
b. Compute GDP deflator in 2017
Years Price of Quantity of Price of Quantity of
hotdogs hotdogs Hamburgers Hamburgers
2016 $1 100 $2 50
2017 $2 150 $3 100
2018 $3 200 $4 150
c. Compute GDP deflator in 2018
d. Compare the GDP deflator inflation rate throughout the years

2. USA country with two goods are being produced: Footballs and Basketballs
a. Compute GDP deflator in 2019 – Assume that 2019 is base year
b. Compute GDP deflator in 2020
c. Compute GDP deflator in 2021
d. Compare the GDP deflator inflation rate throughout the years
Years Price of Quantity of Price of Quantity of
Footballs Footballs Basketballs Basketballs
2019 $10 120 $12 200
2020 $12 200 $15 300
2021 $14 180 $18 275