Question 1 (7 points) Take an economy where wheat and bread are the only goods being traded in the marketplace. The quantity and price of trade over two years are summarized in the following table. Assume that in every year, half of the wheat is purchased by producers of bread and the other half is purchased by the households for domestic use. All of the bread is purchased by the households. Finally, assume that 2011 is the base year. Quantity Produced Price Wheat Bread Wheat Bread Year (kg) (loaf) ($/kg) ($/loaf) 2011 10 80 2 4 2012 12 100 2.5 4.5 (a) Find the nominal GDP in 2011. (b) Find the real GDP in 2012. (c) Find the inflation rate in 2012, implied by the GDP deflator. (d) Assume that the economy exports all its bread and there is no import. Compute the inflation rate in 2012 implied by the CPI