Consider an economy that produces only milk and butter, and it has published the following macroeconomic data.

Year 1 Year 2

Quantity Price Quantity Price

Milk 60 $10 80 $12

Butter90 $6 120 $8

a) (4 points) The nominal GDP in year 1 is $Answer

and in year 2 is $Answer

.

b) (3 points) Using year 1 as the base year, the real GDP in year 1 is $Answer

and in year 2 is $Answer

.

c) (2 points) The growth rate of real GDP from year 1 to year 2 is Answer

. (Do not use the percentage sign, i.e. type 0.15, not 15%, and round your answer to two decimals)

d) (4 points) Using year 1 as the base year, the GDP deflator in year 1 is Answer

and in year 2 is Answer

. (Do not forget to multiply with 100 in the formula for the GDP deflator and round your answer to two decimals)