# test1 - U niversity o f T oronto M acroeconomicT heory & P...

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University of Toronto Macroeconomic Theory & Policy (EC0202Y1) Masoud Anjomshoa l:3:T:::'::li::::::::::'::y:::1':':':"i:_1:::1':::------i::l::=::=: Y::ji:g:::1':1":'t13j:::l":::l':LTi:l::1Ii::::::-:: 1- Write the completed version of following table in your booklet: (Total 10 points) Year Real GDP Nominal GDP GDP Deflator Inflation Rate Real GDP Growth Rate 2003 1200.0000 100.0000 2004 4% 5% 2005 l3 86.0000 rr0.2400 2006 1584.r54r -4% 2007 r410.3936 17 63.1635 :::::::: -:::::: 2)- (25 points) a)- Using following economy, calculate nominal and real GDP for years 1996 and 1997 in order to show how the base year method may not calculate the growth rate of real GDP for 1997 properly. (10) b)- Explain the reason for this problem. (3) c)- What is the chain weighting method solution? (2) d)- Find CPI for years 1996 and,1997, and inJlation rate for year 1997 (Base year is 1997). (10) Food Clothing Entertainment Year Price Quantity Price Quantity Price Quantify 1996 \$s0 10 s1 100 s4 100

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## This note was uploaded on 07/19/2011 for the course ECO 202 taught by Professor Anjomshoa during the Summer '08 term at University of Toronto- Toronto.

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test1 - U niversity o f T oronto M acroeconomicT heory & P...

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