2. Suppose there are two goods in the economy, apples and bananas. The table below shows prices per pound and quantities consumed in the years 1 and 2 (a) (3 points) Calculate Nominal GDP, Real GDP, and GDP deator in years 1 and 2, using 1 as the base year. (b) (3 points) Suppose that the quantities in year 1 are used to compute the xed market basket of consumer purchases. Calculate the CPI in years 1 and 2. (c) (2 points) Calculate the ination rate between years 1 and 2 using the GDP deator and the CPI that you found in parts (a) and (b). (d) (4 points) Explain why your answers are so dierent from each other.
2. Suppose there are two goods in the economy, apples and bananas.The table below shows prices per pound
and quantities consumed in the years 1 and 2
(a) (3 points) Calculate Nominal GDP, Real GDP, and GDP deator in years 1 and
2, using 1 as the base year.
(b) (3 points) Suppose that the quantities in year 1 are used to compute the xed
market basket of consumer purchases. Calculate the CPI in years 1 and 2.
(c) (2 points) Calculate the ination rate between years 1 and 2 using the GDP
deator and the CPI that you found in parts (a) and (b).
(d) (4 points) Explain why your answers are so dierent from each other.
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