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Principles of MacroeconomicsSpring 2016Assignment # 1Maria AverianovaDue Date: February 23, 2016Task 1The information in the table gives the price level and nominal GDP values for tenyears. Use this information to answer the questions below.YearPrice LevelYear to YearInflation Rate(%)Nominal GDP($ billions incurrent yearprices)Real GDP ($billions in 1976prices)19761001981981977106.46.4218204.91978112.65.8242214.91979123.910.0276222.81980137.210.7310225.91981152.110.9356234.11982165.28.6374226.41983173.55.0406234.01984178.93.1445248.71985183.52.6478260.5a.Fill in the table above.b.Explain the difference between inflation, deflation and disinflation.c.Did this economy experience a recession based on the time path either ofnominal or real GDP?
Task 2Consider the following table of informationa.Calculate GDP via expenditure approach.b.Calculate GDP via income approach.