Abay consumes only apples. In year 1, red apples cost birr 1 each, green apples cost birr 2 each, and Abay buys 10 red apples. In year 2, red apples cost birr 2, green apples cost birr 1, and Abay buys 10 green apples.a. Compute a consumer price index for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2? b. Compute Abay's nominal spending on apples in each year. How does it change from year Ito year 2? c. Using year 1 as the base year, compute Abby's real spending on apples in each year. How does it change from year 1 to year 2? d. Compute the GDP deflator for each year. How does the deflator change from year 1 to year 2? e. Suppose that Abby is equally happy eating red or green apples. How much has the true cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indexes