1. Assume there was a self-sufficient country with no exports or imports called Rand-Hymes. Its economy consisted of 2 goods: limes and chimes. In 1970, the economy produced 20 limes and 50 chimes. The prices (given here in the local currency, dollars) were 12 and 30 dollars, respectively. During the next year, the citizens of Rand-Hymes were struck by a debilitating citrus virus which induced extreme drowsiness in its victims. Productivity declined. In 1971, the economy produced 15 limes at 15 dollars each and 30 chimes costing 32 dollars each.
   1. Fill in the following table based on the above information. Note: you may round your answers to the second decimal place. (5 points)

	1970	1971
Nominal GDP
Real GDP (in 1970 dollars)
GDP deflator(in 1970 dollars)
Real GDP (in 1971 dollars)
GDP deflator (in 1971 dollars

1. What is the rate of inflation between 1970 and 1971 using 1970 as a base year? (3 points)
2. What is the percentage change in the GDP deflator between 1970 and 1971 using 1971 as the base year? (3 points)
3. Why are your answers to b) and c) different? (2 points)