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1. An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good, the

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1. An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good, the other half is used to produce ketchup. In 2015, 30 pounds of tomatoes are produced at $2 each, and 20 ounces of ketchup at $7 each. In 2016, 40 pounds of tomatoes are produced at $4 each, and 30 ounces of ketchup at $8 each. Find the following: a. Nominal GDP for 2015 and 2016 b. Real GDP for 2015 and 2016 (base year = 2015) c. Ination rate between 2015 and 2016

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