1. In year 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 20 computers are produced and sold at $1000 each, and in year 2, 25 computers are sold at $1500 each. In year 1, 10 000 loaves of bread are sold for $1 each, and in year 2, 12 000 loaves of bread are sold for $1.10 each. (a) Calculate nominal GDP in each year. (b) Calculate real GDP in each year (using the base-year method) and the percentage increase in real GDP from year 1 to year 2. Use year 1 as the base year. (c) Use the chain-weighting method to calculate real GDP in each year and the per- centage increase in real GDP from year 1 to year 2 (use year 1 as the base year to calculate real GDP levels). (d) Calculate the implicit GDP price deflator and the percentage inflation rate from year 1 to year 2 using the nominal and real GDP numbers you calculated in parts (a) and (c)