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1. Country A produces PC (final good) and CPU (intermediate good) and imports ramen. The table below shows prices and production levels of PC

 

1. Country A produces PC (final good) and CPU (intermediate good) and imports ramen. The table below shows prices and production levels of PC and CPU and prices of banana in two years. The consumption basket of the typical consumer in A consists of one PC and 4 ramen. Year I is the base year. If you need to round your answer, round it off to two decimal places. P of PC Q of PC Pof CPU Year 1 100 50 20 Year 2 120 40 30 1.a. Calculate A's nominal GDP and Real GDP in year 2 Nominal GDP: Real GDP: 1.b. Calculate GDP deflator and the inflation rate in year 2. GDP deflator Inflation rate Qof CPU Pof Ramen 60 1 GO Lc. Calculate the costs of the consumption basket in year 1 and Year 1 Year 2 1.d. Calculate CPI and the inflation rate in year 2. CPE Inflation rate: 4 your 2. y Le. In year 3, the price of CPU fell and the price of ramen rose. Answer how the GDP deflator and CPI would change in year 3 Decrease, Increase or No change. GDP deflator CPI:

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