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4. Consider an economy with two goods, cheese and salad. Suppose that the prices and quantities sold in 2012 and 2013 are the following: Good

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4. Consider an economy with two goods, cheese and salad. Suppose that the prices and quantities sold in 2012 and 2013 are the following: Good 2012 Price 2013 Price 2012 Quantity 2013 Quantity Cheese 10 12 10 9 Salad 15 16 5 8 a. Calculate the nominal GDP for 2012 and for 2013. Explain how you got your numbers. b. Calculate the real GDP for 2013 using 2012 as a base year c. Calculate the cost of the CPI basket if the market basket includes 2 cheese and 1 salad in 2012

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