Suppose that the country of Samiam produces only eggs and ham.In 2005 it produced 100 dozen eggs at $3 per dozen and 50 pounds of ham at $4 per pound.In 2004,the base year,eggs sold for $1.50 per dozen and ham sold for $5 per pound.For 2005,

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Nominal GDP for 2005 is calculated using current prices: (100 dozen eggs * $3) + (50 pounds of ham * $4) = $500. Real GDP for 2005 is calculated using base year prices: (100 dozen eggs * $1.50) + (50 pounds of ham * $5) = $400. The GDP deflator is (Nominal GDP / Real GDP) * 100 = (500 / 400) * 100 = 125.

Suppose That the Country of Samiam Produces Only Eggs and Ham.In