(36)In year 1 and year 2, there are two products produced in a given economy: apples and oranges. Suppose that there are no intermediate goods. In year 1, 10 apples are produced and sold at $4 each, and in year 2, 8 apples are produced and sold at $5 each. In year 1, 2 oranges are sold for $12 each, and in year 2, 5 oranges are sold for $6 each.

Using the chain weighted method with the base year 1, calculate the GDP price deflator in year 2?

(Show your work)

a) 86

b) 103

c) 78

d) none of the above