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Suppose an economy only produces 2 goods: bread, tomatoes. The table below gives prices and output for these goods in 2017 and 2018. Good Prices

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Suppose an economy only produces 2 goods: bread, tomatoes. The table below gives prices and output for these goods in 2017 and 2018. Good Prices and Quantity Output in 2017 Price in 2017 Output in 2018 Price in 2018 bread 76 $1.35 74 $1.35 tomatoes 29 $1.80 33 $1.92 What is the value of the GDP deflator in 2018 and what does this say about differences in prices between 2017 and 2018? The GDP deflator is 113 which means prices rose 13.0% between 2017 and 2018 The GDP deflator is 117.6 which means prices rose 17.6% between 2017 and 2018 The GDP deflator is 87.1 which means prices fell -12.9% between 2017 and 2018 The GDP deflator is 102.5 which means prices rose 2.5% between 2017 and 2018 None of the above

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