Question

Using 2015 as the base year, calculate nominal GDP, real GDP, and the GDP price deflator for each year.

Year	Quantity of Strawberries	Price of Strawberries	Quantity of Cream (pints)	Price of Cream (per pint)	Nominal GDP	Real GDP	GDP Deflator
2015	100	3.00	200	2.00
2016	125	4.00	400	2.50
2017	150	5.00	500	3.00

Answer 1

Nominal GDP =sum of (the price of the year * quantity of the year)

NGDP in year 2015=100*3+200*2=700

NGDP in year 2016=125*4+400*2.5=1500 and so on

real GDP=sum of ( price of the base year* quantity f the year)

RGDP in 2015==100*3+200*2=700

RGDP in 2016=125*3+400*2=1175

GDP deflator =(NGDP/RGDP)*100

GDP deflator in 2015=(700/700)*100

GDP deflator in 2016=(1500/1175)*100=127.659574=127.66 and so on

Year	Quantity of Strawberries	Price of Strawberries	Quantity of Cream (pints)	Price of Cream (per pint)	Nominal GDP	Real GDP	GDP Deflator
2015	100	3	200	2	700	700	100
2016	125	4	400	2.5	1500	1175	127.66
2017	150	5	500	3	2250	1450	155.17