Question 5: GDP and Inflation (10 MARKS) (a) Consider the below production data for a small economy and calculate nominal GDP for each Year. Year Price of Quantity Price of Quantity of Milk of Milk Cookies Cookies 2019 $2 10 $1 20 2020 $2.25 12 $1.2 25 (b) Given 2019 is the base year, calculate real GDP for each year. (c) Calculate the rate of real economic growth in 2020. (d) For each year calculate the GDP deflator. For 2020 calculate the rate of inflation too. (e) Assume the CPI basket contains 2 units of milk and 3 units of cookies and construct a CPI for each year. For 2020 also calculate the rate of inflation