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Refer to Table 2. What is the Deflator in year 2 using year 2 as the base? options: 100 106.74 111.48 117.70 Suppose a simple

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Refer to Table 2. What is the Deflator in year 2 using year 2 as the base? options: 100 106.74 111.48 117.70 Suppose a simple economy produces five goods: purses, pasta, shirts, cotton, and military drones. All the cotton is used to make the shirts. The purses, pasta, and shirts are bought by households as a final good. Additionally, given the strict laws on military technology, only the government can purchase military drones. The production numbers forthe domestic goods are below in Table 2. Year Year 2018 2019 Quantity Price Quantity Purses 100 $60 100 Pasta 100 $2 120 Shirts 50 $25 65 Cotton 8,000 50.60 12,000 Militar 100 $250.00 150 y Drones Price $65.00 $2.25 $25.00 $0.70 $300.00

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