Question: Kindly help answer question below 4. a. Fill in the gaps 1 to 14 below. Please link the word(s) with the numbers in your answer

Kindly help answer question below



4. a. Fill in the gaps 1 to 14 below. Please link the word(s) with the numbers in your answer sheet. The first difference is that the .....(1)..... measures the prices of all goods and services produced, whereas the....(2).... measures the prices of only the goods and services bought by consumers. Thus, an increase in the price of goods bought by firms or the government will show up in the.....(3)..... but not in the......(4).Secondly, the.....(5)..... includes only those goods produced domestically, Imported goods are not part of.....(6)......and do not show up in the.....(7)....... For example, an increase in the price of guns made in Russia and sold in the Gabon affects the.....(8)..... because consumers in the Gabon buy the gun, but it does not affect the.....(9)......as Thirdly, the two measures aggregate the many prices in the economy. The ,.(10)... assigns fixed weights to the prices of different goods, whereas the .(1 1).wm assigns changing weights. In other words, the ......(12)..... is computed using a fixed basket of goods, whereas the (13)... allows the basket of goods to change over time as the composition of ....(14)....... changes. To see how this works, consider an economy that produces and Consumes only apples and oranges.4. b. Determining the fixed basket of goods we have 3 footballs and 4 rugby balls. The price of each good in each year is given by the following table: YEAR PRICE OF FOOTBALLS PRICE OF RUGBY BALLS 2013 E16 E18 2014 E18 $21 2015 E20 124 a) Compute the Cost of the Basket b) Using Year 2013 as the base year, compute the CPI c) Compute the inflation rate
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