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An economy produces three goods: cars, computers, and oranges

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An economy produces three goods: cars, computers, and oranges. Quantities and prices per unit for year 2007 and 2008 are as follows:

1. How much is the nominal GDP in 2007 and 2008? How much does the nominal GDP change from 2007 to 2008 in percentage?

2. Choose 2007 as the base year, how much is the real GDP in 2007 and in 2008? How much does real GDP change from 2007 to 2008 in percentage?

3. Suppose we still use 2007 price as the common price to compute real GDP in 2007 and in 2008. Compute the GDP deflator for both years and the inflation rate in 2008.