Table 8-23 2017 2020 Product Quantity Price Quantity Price Pizzas 100 $10 120 $12 Haircuts 50 15 45 20 Backpacks 200 40 210 45 1) Refer to Table 8-23. Suppose that a very simple economy produces three goods: pizzas, 1) haircuts, and backpacks. Suppose that the quantities produced and their corresponding prices for 2017 and 2020 are shown in the table above. Use the information to compute the real GDP in the year 2017 and 2020. Calculate the real GDP in 2020 assuming the base year is 2017. Do the same calculation assuming the base year is 2020. Are the calculations different? Why? + Table 8-25 2019 2020 Nominal GDP $10,000 $15,000 Real GDP 10,000 14,000 2) Refer to Table 8-25. Given the information above, calculate the GDP deflator for both 2) 2019 and 2020. What does the value of the deflator in the year 2019 tell you about that year with respect to the base year? What happened to prices in 2020 as compared to 2019?Base Year : 2017 Pizzas: ( 10 . 100 ) + ( 10 . 120) = $2,200 Haircuts : ( 50 . 15 ) + ( 45 . 15) =$ 1,425 Backpacks : ( 200 . 40) + ( 210 . 40 ) = $16, 400 Base Year: 2020 Pizzas : ( 100 . 12) + ( 120 . 12) = $2, 640 Haircuts: ( 50 . 20) + ( 45 . 20) 2$1, 900 Backpacks : ( 200 . 45) + ( 210. 45) =$18, 450