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1. The economy of Fruitopia produces only apples and oranges. In 2010 it produced 1 million apples and 2 million oranges; by 2020 the totals
1. The economy of Fruitopia produces only apples and oranges. In 2010 it produced 1 million apples and 2 million oranges; by 2020 the totals had risen to 1.2 and 4 million respectively. Over that same period, the price of apples rose from $1 to $1.50, but the price of oranges stayed constant at $0.75. a. Calculate nominal GDP in each year. b. Calculate the increase in real GDP over the decade, using 2010 prices c. Calculate the increase using 2020 prices. d. Find the increase in the GDP deflator in each case. e. Explain if the results make sense
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