Assume an economy in which only apple and orange are produced. In year 1, 200 million killograms of apple are produced and consumed and its price is$0.6 per kilogram, while 150 million killograms of orange are produced and consumed and its price is $0.7 per killogram. In year 2, 250 million kilograms ofapple are produced and consumed and its price is $0.7 per kilogram, while 300 million kilograms of orange are prduced and its price is $0.8 per kilogram.(Show the results upto 1 decimal point when required)(a) If the base year is year 1 then the GDP price deflator in year 2 is(b) If the base year is year 2 then the GDP price deflator in year 1 is(c) If the base year is year 1 then the inflation rate between years 1 and 2 is(d) If the base year is year 2 then the inflation rate between years 1 and 2 is(e) The chain weighted inflation rate between year 1 and year 2 is %(f) If the base year is year 1 then CPI inflation rate is %%%

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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