6. Consider the economy of the Canary Islands that produces three types of fruit: pineapples, bananas, and tomatoes. In the base year (a few years ago), the production and price data were as follows:

a. Find nominal GDP in the current year and in the base year. What is the percentage increase since the base year?

b. Find real GDP in the current year and in the base year. By what percentage does real GDP increase from the base year to the current year?

c. Find the GDP deflator for the current year and the base year. By what percentage does the price level change from the base year to the current year?

d. Would you say that the percentage increase in nominal GDP in this economy since the base year is due more to increases in prices or increases in the physical volume of output?

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Fruit Pineapples Bananas Quantity 3000 bags Tomatoes 8000 bags 6000 bunches Price 2 per bag 3 per bunch 4 per bag In the current year the production and price data are as follows: Fruit Quantity Price Pineapples Bananas 4000 bags 3 per bag 14,000 bunches Tomatoes 32,000 bags 2 per bunch 5 per bag