1. An economy produces three goods: chocolates, flowers, and watches. Quantities and prices per unit for years 2019 and 2020 are as follows.

	2019	2020
	Quantity	Price	Quantity	Price
Chocolates	10	$10	12	$20
Flowers	4	$20	6	$25
Watches	100	$100	100	$120

1. Calculate the CPI of year 2019 and 2020. Show your work.
2. Calculate the rate of inflation between 2019 and 2020. Show your work.
3. A $1.00 good in 2019 how much would it be in 2020. Show your work.
4. Calculate the nominal GDP of this economy for 2019 and 2020.
5. Calculate the real GDP of 2020.
6. Calculate the GDP deflator.
7. Calculate the rate of inflation?

2. Aggregate demand

1. Draw an AD graph showing a decrease in aggregate demand in France.
2. Due to this change, did the quantity of output demanded change at all price levels or for a specific price level only?
3. Complete the table by indicating the change in each determinant necessary to decrease aggregate demand

Change Needed to Increase Aggregate Demand Wealth Taxes Business Expectations About Future Sales Incomes in Other Countries Change Needed to Increase SRAS Nominal wage Price of nonlabor inputs Productivity