1. In an economy that only produces bread, they produce 300 loaves and the price is $4 per loaf in year1. In year 2 the quantity increases to 400 and the price is $5. In year 3, the quantity rises to 500 and the price is $6. Assuming that year 1 is the base year, calculate: Nominal GDP for each year. Real GDP for each year. GDP deflator for each year. Percentage growth rate of real GDP for years 2 and 3. 2. A small country produces only hamburgers, hotdogs and pizzas. The following data is given for three years: Hamburgers Hotdogs. Pizzas Quantity. Price Quantity. Price. Quantity Price 2015 20. $4. 60 $2 50 $5 2016. 24. $5 100 $3 80 $6 2017. 28 $6 110 $4 90 $7 a. Assuming 2015 as the base year, calculate the CPI index for years 2016 and 2017. b. Calculate the inflation rates for 2016 and 2017. 3. If Americans decided to reduce their annual consumption by 10% and instead increase investment by the same amount, What would be the effect of such a decision? Who will be the main beneficiary of such a move? 4. If the US government-imposed restrictions on foreign investment in the US, such as levying taxes on foreigners investing in America, What would happen to supply and demand for loan-able funds? Show by graph. What will happen to the interest rates