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Consider an economy that produces and consumes apples and computers as shown in the table below: Good Apples Computers 2019 Quantity Price 500 $2

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Consider an economy that produces and consumes apples and computers as shown in the table below: Good Apples Computers 2019 Quantity Price 500 $2 5 $1,000 2020 Quantity Price 550 $3 6 $1,000 a. Using 2019 as the base year, compute nominal GDP and real GDP for both years. b. Utilizing the growth rates in both nominal and real GDPs, estimate the inflation rate for 2020.

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