Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6. a. Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
b. What is the percentage growth rate of real GDP from year 2 to year 3?
c. What is the inflation rate as measured by the GDP deflator from year 2 to year 3?