Question The land of milk and honey has the following data

Year	Milk price	Milk quantity	Honey price	Honey quantity
2010	$3	20	$2	10
2011	$3	40	$2	20
2012	$6	40	$4	20

a) Given the base year of 2011, calculate nominal GDP, real GDP, and GDP deflator for each year.

b) Calculate percentage changes in nominal GDP, real GDP, and GDP deflator in 2011 and 2012 from the previous year.

c) In 2011, among nominal GDP, real GDP, and GDP deflator, identify the variable that does not change. Explain your answer.

d) Does the overall economic activity increase more in 2011 or 2012? Explain your answer.