QUESTION 1 10 points Save Answer We learned that when a country opens up and begins trading with the world the decision on whether to become an exporter or an importer depends on the relationship between the world price for an item and the domestic price for an item. For the situation of an importer, we also saw that Pw must be below P*, otherwise we would not be an importer. Explain why this is the case. Further, does Consumer Surplus increase or decrease when we become an importer? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt Ev Ev A v ...PAT pw See the above representation of an importer to answer the following questions 1) What is the market price for this good with trade with the rest of the world? 2) What is the amount of imports for this product before the tariff is implemented? 3) Based on the information given, can we calculate what the tariff revenue to the government would be?QUESTION 3 In the equation for GDP we know that; Y =C+I +G +{X-M} Label the variables Y stands for: C STands for: I Stands for: v G Stands for: v X Stands for: M Stands for: VQUESTION 4 Explain what the difference between real and nominal GDP is. Which one are we more concerned with to measure economic growth?QUESTION 6 10 points Save Answer Px QX Py Qy Year 1 3 10 2 Year 2 5 15 6 Year 3 11 20 15 Consider the above table detailing prices and quantities of two goods, x and y over three years. Use year 1 as the base year. Calculate Nominal GDP, then calculate real GDP. After calculating real GDP also calculate the GDP Deflator and determine inflation between years 1 and 3. Is there inflation or deflation?QUESTION 7 PX Py Year 1 4 6 Year 2 7 9 Year 3 9 15 Good x has a Od of 10. Good Y has Qd of 13. Use year 1 as the base year Use the above information to calculate CPI in Year 1, 2 and 3. Then calculation inflation in year 2