Use the information in the table below to answer the followi

Use the information in the table below to answer the following three questions. A country produces two goods: apples and muffins. The prices and output for the goods are shown for the years 2010, 2011, and 2012. Assume 2010 is the base year. What is real GDP in 2012? The GDP deflator in 2011 is equal to Suppose the CPI basket is fixed in the base year. If the base year is 2010, what is the consumer price index for 2012? Suppose the nominal interest rate on a loan is 5%. The expected inflation rate is 1.5%. When the loan payment is due one year later, the inflation rate is 2%. Based on this information, we know that

Solution

13.

Real GDP for 2012 will be measured at prices of 2010 as 2010 is the base year and the real gdp assumes only base year price

so Real GDP for 2012 = 1*110 + 2*165 = $440

14.

GDP deflator in 2011 = (nominal GDP in 2011 / Real GDP in 2011)*100 = ((2*135+4*230) / (1*135+2*230) )*100

= (1190/ 595)*100 = 200

15.

CPI 2012 = ((150*3+160*4) / (150*1+160*2))*100 = (1090 / 470)*100 = 232

As per Chegg policy , you need to put one question at a time . Please put question 16 in the new post.