Coursework 3 [to be submitted by 2pm on Tuesday 7th May 2024 via Turnitin] Coursework-3 Brief All answers for all the questions in all coursework assignments MUST include a brief explanation of how you found them. Question 1 (60 marks) The country Z produces potatoes and apples, some of which are exported to other countries. Consumers work on the potato fields and apple orchards and spend their income on domestically grown potatoes and apples and imported olives. The government collects taxes and is mainly in charge of completing forms, for which purpose it needs to buy pencils. There is an investment in equipment too. The following table gives an overview of these activities in 2019 and 2020. 8 Year 2019 2020 Items Price Quantity Price Quantity Potatoes 1 10000 1.20 10000 Apples (domestic 1.50 2000 2 1500 cons) Apples (export) 1.50 4000 2 2500 Olives imported 2 500 2 500 Hours of labour 10 1500 12 1500 Government 1 2000 1 2000 purchases Tax revenue 3000 3600 Investment 1.50 3000 2 4000 Assuming that 2019 is the base year: (a) Calculate the Nominal and Real GDP for 2019. (15 marks) (b) Calculate the Nominal and Real GDP for 2020. (15 marks) (c) Calculate the GDP deflator. What information does the GDP deflator convey? (15 marks) (d) What would be a useful basket for the CPI in Z ? Using your suggestion, calculate the CPI for 2020. (15 marks)Coursework 3 [to be submitted by 2pm on Tuesday 7th May 2024 via Turnitin] Coursework-3 Brief All answers for all the questions in all coursework assignments MUST include a brief explanation of how you found them. Question 1 (60 marks) The country Z produces potatoes and apples, some of which are exported to other countries. Consumers work on the potato fields and apple orchards and spend their income on domestically grown potatoes and apples and imported olives. The government collects taxes and is mainly in charge of completing forms, for which purpose it needs to buy pencils. There is an investment in equipment too. The following table gives an overview of these activities in 2019 and 2020. 8 Year 2019 2020 Items Price Quantity Price Quantity Potatoes 1 10000 1.20 10000 Apples (domestic 1.50 2000 2 1500 cons) Apples (export) 1.50 4000 2 2500 Olives imported 2 500 2 500 Hours of labour 10 1500 12 1500 Government 1 2000 1 2000 purchases Tax revenue 3000 3600 Investment 1.50 3000 2 4000 Assuming that 2019 is the base year: (a) Calculate the Nominal and Real GDP for 2019. (15 marks) (b) Calculate the Nominal and Real GDP for 2020. (15 marks) (c) Calculate the GDP deflator. What information does the GDP deflator convey? (15 marks) (d) What would be a useful basket for the CPI in Z ? Using your suggestion, calculate the CPI for 2020. (15 marks)