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(b) The MONA country produces two goods, namely Good A and Good B. The quantities and prices of these two goods for the last several

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(b) The MONA country produces two goods, namely Good A and Good B. The quantities and prices of these two goods for the last several years are shown as below. Price of Quantity of Price of Quantity of Year Good A Good A Good B Good B in ' in unit in RM in unit 2017 _I_-E-._ 2018 _I_ 2019 2020 mmm- (i) Assume 2017 is the base year, compute the nominal and real Gross Domestic Product for each year. (4 marks) (ii) Compute the consumer price index for 20 l9 and 2020. (2 marks) (c) Using the aggregate demand and short run aggregate supply (AD-SRAS) model, illustrate and explain the effects on the equilibrium price level and real Gross Domestic Product for each of the following events: (i) Shipping and logistic costs are expected to rise in the next 6 months. (5 marks) (ii) Bank Negara Malaysia announced a reduction in the interest rate due to the recessionary condition

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