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Please help with all 3 questions An economy produces two goods A and B. Both households and the government purchase goods A and B. Use

Please help with all 3 questions

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An economy produces two goods A and B. Both households and the government purchase goods A and B. Use the table below to answer questions 1 and 2. Production Consumption households Prices Year QA QB QA PA PA 2017 1 60 70 10 10 20 2018 150 100 70 10 13 30 1. CPI (s) Compute the cost of the consumption basket for both years. (b) Compute the CPI for both years. Take 2017 as the base year. (c) Compute the inflation rate for year 2018. 2. GDP deflator (a) Compute Nominal GDP for both years. (b) Compute Real GDP for both years. Take 2017 as the base year. (c) Compute the GDP deflator for both years. Take 2017 as the base year. (d) Compute the inflation rate for year 2018 using the GDP deflator. 3. What explains the difference between your answer in 1(c) and 2(d)

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