Consider the quantity of production and prices for a two-good stylized economy as depicted in the table below. assume for any calculations that the base year is 2016.
Year
Year quantity good a price per unit of a quantity good k price per unit of k
2016 300 10 150 10
2017 250 20 200 10
2018 200 30 250 8
calculate the gap deflator for each of the three years in the table. what is the inflation rate between 2016 and 2017? between 2017 and 2018?
