Consider a macroeconomy that produces three goods. Use 2017 as base year Quantity Product 2017 2018...

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Consider a macroeconomy that produces three goods. Use 2017 as base year Quantity Product 2017 2018 2017 2018 A 10 12 $5 $6 B 20 20 $1 $1 с 5 4 $10 $12 a. Calculate nominal and real GDP for 2017 and 2018 b. What is the growth in real GDP between 2017 and 2018? c. Assume that the typical consumer's basket of goods is given by the combination (A-2, B-1, C-3). i. Calculate the CPI for 2017 and 2018 ii. CPI inflation rate. iii. Comment on the growth rate of output and the price level in the macroeconomy iv. Which measure - CPI or GDP deflator-is a better measure of inflation? Defend your answer Price Consider a macroeconomy that produces three goods. Use 2017 as base year Quantity Product 2017 2018 2017 2018 A 10 12 $5 $6 B 20 20 $1 $1 с 5 4 $10 $12 a. Calculate nominal and real GDP for 2017 and 2018 b. What is the growth in real GDP between 2017 and 2018? c. Assume that the typical consumer's basket of goods is given by the combination (A-2, B-1, C-3). i. Calculate the CPI for 2017 and 2018 ii. CPI inflation rate. iii. Comment on the growth rate of output and the price level in the macroeconomy iv. Which measure - CPI or GDP deflator-is a better measure of inflation? Defend your answer Price

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