The following table shows some data for an economy that produces only two goods: milk and honey. Year 2020 2021 2022 Milk Year 2020 2021 2022 Price (Dollars) 1 2 2 Quantity (Quarts) 100 100 200 Honey Price (Dollars) 4 4 Quantity (Quarts) 50 50 100 Using 2020 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year. Nominal GDP Real GDP (Dollars) (Dollars) GDP Deflator 5. Problems and Applications Q9 A farmer grows wheat and sells to a miller for $90. The miller turns the wheat into flour and sells the flour to a baker for $145. The baker turns the wheat into bread and sells the bread to consumers for $155. Consumers eat the bread. Assume that these transactions account for all economic activity in this economy. GDP in this economy is S Value added is defined as the value of a producer's output minus the value of the intermediate goods that the producer buys to make the output. Assuming there are no intermediate goods beyond those just described, complete the following table by calculating the value added for each of the three producers. Then enter the total value added in the final row. Producer Farmer Miller Baker Total True or False: The total value added for the three producers in this economy does not equal the economy's GDP. O Value Added (Dollars) True False 5. Calculating inflation using a simple price index the Condary price indes, the nate Price Index (UP), created to The following table contains information on the market basket for the UPS and the price of each good The cost of such good in the basket as well as the basket's tal cost are given for 2020 Pasfor 2021 and 2022, and then thing Streaming services Iced coffens Textbooks Notebooks Price Quantity in Basket (Dollars) 1 64 150 3 10 $ Energy drink Tetal cont Price index Suppose the pricinuses 2020 s the base your 2020 80 2 3 Cost (Dollars) 14 300 HOD 16 120 1,300 100 2021 Price Cost (Dollars) (Dollars) 104 2 15 2 purchases made by a typical undergradua 2020, 2021, and 2022 2022 Price Cost (Deflers) (Dollar) 134 2 In the last row of the table and enter the value of the for the main 2020 and 2021, the UPC increased by . Between 2021 and 2022, the UP such as the LIP might overitate inflation in the cost of going to collage Chick a Which of the following fu, would it whe price in that apply da tudore to buy 10 textbooks, regardless of the price An app-conter company, which made it to get around places a college campuses, became available for rental As the proof sargy drinks increased relative to the price of coffee between 2020 and 2022, students decreased their consumption of ergy drinks and increased their consumption of coffee The quality of textbooks increased dramatically from 2020 to 2022, with textbook companies bunding new online study and with the books, thi quay change is furd to ma