Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years.
Year 2000 Year 2010
Goods Quantity Price Quantity Price
Bread 100 50,000 120 60,000
Automobiles 500,000 10 400,000 20
a. Using the year 2000 as the base year, compute the following statistics
for each year: nominal GDP, real GDP, the implicit price deflator for
GDP, and a fixed-weight price index such as the CPI.