within the country. For coffee, the quantity is the amount imported annually. There are no other products either produced or imported. You will use this information to compute various measures of aggregate output (or income) and different price indexes. Restaurant Meals Mountie Posters Coffee (meals) (posters) (kg) Year Price Quantity Price Quantity Price Quantity 1996 $12 1700 $3.40 1,400 $4.80 950 1997 $14 1850 $3.60 1,300 $5.50 1,100 1998 $15 1950 $3.96 1,250 $6.05 1,075 1999 $17 1850 $4.36 1,125 $6.66 1,025 2000 $19 1750 $4.80 1,050 $7.33 975 2001 $20 2000 $4.20 1,250 $5.80 1,150 2002 $17 2100 $4.00 1,350 $5.80 1,100 2003 $17 2250 $3.90 1,400 $5.55 1,150 2004 $14 2500 $3.80 1,375 $5.25 1,300 2005 $16 2000 $5.00 1,100 $7.30 1,100 2006 $15 1750 $4.60 1,050 $7.70 1,200 2007 $17 1900 $4.80 1,100 $8.00 1,200 It is recommended that you load these data into a spreadsheet to answer the questions below. a) Compute nominal GDP in Canada for each year using two different methods. Explain which two of the three available approaches you are using - the income approach, the expenditure approach, or the value-added approach. b) Compute real GDP in Canada for each year, using 1996 as the base year (do not use the chain- weighted approach - use the old fashioned method). Now compute real GDP in Canada for each year using 2001 as the base year (same old-fashioned approach). Explain any differences in the pattern these two series take over time. c) Explain in general why the real and nominal measures of GDP will move differently. Why is there such a difference in the movements between 2001 and 2004? What is going on in this three-year period? d) Construct an explicit Consumer Price Index, using 1996 as the base year. e) Now construct the implicit GDP deflator for this economy, using the measures for nominal and real GDP (2001 base year) that you constructed in Questions 1 and 2. In any given year, it is given by Implicit GDP Deflator = Nominal GDP Real GDP x 100