1. The table below pictures the imaginary economy of Wakanda. In the rst year, the economy was closed, but after T'Challa appears in front of the United Nations to reveal Wakanda's true state, they became an open economy. m_ $20,000 $20,000 mu 55,000 $7,000 Government Ex - enditure G $3,000 55,000 m 56.000 m 52,000 a) What is Wakanda's nominal GDP for year 1 and year 2? b) What is Wakanda's trade balance for year 1 and year 2? c) Assume that year 1 is our base year, and the price index for year 2 is 103. What is Wakanda's real GDP for year 1 and year 2? d) How much did Wakanda's nominal GDP grew from year 1 to year 2? If they kept growing at that rate for 5 years, what would be their nominal GDP at the end of that period (consider year 1 as the beginning of the series)? e) Since Wakanda is very intellectually advanced, internationally isolated and highly resourceful, do you believe that they would use GDP as their measure of well-being? Why or why not? 2. Consider the consumption habits of the Pokemon Pikachu, described below. Red berries (pack) Red apples Ketchup Quantity Price/each Quantity Price/each Quantity Price/each Period 1 10 $4 6 $3 20 $8 Period 2 12 $4 6 $5 16 $10 Period 3 13 $5 7 $5 14 $11 a) Assume that a representative consumption basket for Pokemons contains 12 packs of red berries, 8 red apples and 2 ketchups. What's the inflation rate of Pokemon World from period 1 to period 2, from period 2 to period 3 and from period 1 to period 3? ECON204 b) Did Pikachu experience more or less inflation than the average Pokemon in each of those periods? Why