7.1 Country T produces rice and vegetable and imports pork. The following table shows the price and quantity of the production and imports in 2017 and 2018. In both years, Country T exports half of the vegetable produced to Country S. All the imports and outputs without being exported are for consumption within Country T. (For simplicity, no capital investment and no government expenditure are involved in this country.) Use 2017 as the base year. 2017 2018 Price ($/kg) Quantity (billion kg) Price ($/kg) Quantity (billion kg) Produced Rice 10 50 11 55 Vegetable 10 40 10.5 45 Imported Pork 10 22 9 25 (a) Calculate the growth rates of real and nominal GDP of Country T for 2018 over 2017. (b) Why is real GDP generally a better measure of economic performance? (c) Calculate the GDP deflator of Country T for 2018. (d) Calculate the size of each component under the expenditure approach for Country T in 2018 at current market prices. (Hint: Some components may be zero. Also, make sure that they add up to the nominal GDP you have calculated in part (a).) (e) Calculate the consumer price index (CPI) for Country T for 2018 using 2017 as the base year. Why is it different from the GDP deflator calculated in part (b)