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a. Desert Kingdom produces only sand and camel rides. The base year is 2003, and the table give the quantities produced and the prices. Quantities

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a. Desert Kingdom produces only sand and camel rides. The base year is 2003, and the table give the quantities produced and the prices. Quantities Prices Good 2003 2004 2003 2004 Sand 1,000 1,100 1 2 Camel rides 50 60 100 120 Calculate Real GDP for Desert Kingdom in 2004. (3) b. In Southland, there are three consumption goods: bananas, coconuts and grapes. In Southland, the typical basket of urban consumption goods has costs as follows: Base Period Current Period Goods Quantity Price ($) Price ($) Bananas 120 6 8 Coconuts 60 8 10 Grapes 40 10 9 Calculate the CPI for the current period. (3)

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