Consider the following table:The economy in the base year 2018 produced:Item Quantity PriceCoffee 20 cups $3 per cupPizza 22 pizzas $10 per pizzaBeer 40 litres $3 per litreIn 2019 the same economy produced:   Item Quantity PriceCoffee 24 cups $2 per cupPizza 25 pizzas $9 per pizzaBeer 42 litres $3.50 per litre                Which of the following is the rate of consumer price inflation and real GDP growth between 2018 and 2019?Group of answer choicesCPI inflation is -6.25% and real GDP growth is 11.1%CPI inflation is 11.1% and real GDP growth is -6.25%CPI inflation is 12% and real GDP growth is -5.5%CPI inflation is -5.5% and real GDP growth is 12%CPI inflation is -5.5% and real GDP growth is 10%

An economy has two goods: beer and pretzels. The following two tables list the prices and quantities for 2020 and 2021 along with nominal GDP, real GDP, and the GDP deflator.(Express your answer to two decimal points.)Year Good Price Quantity2020 Beer $4.00 2,000  Pretzels $3.00 ??2021 Beer $4.50 2,500  Pretzels ?? 6,000Year Nominal GDP Real GDP GDP Deflator (2020=1)2020 $23,000.00 $23,000.00 1002021 ?? $28,000.00 1.2059What is the price of pretzels in 2021?(Round your answer to two decimal points.)

Consider an economy that produces only good A and good B. In year 1, this economy produced 12,000 units of good A and 8,000 units of good B. In year 2, this economy produced 11,000 units of good A and 8,500 units of good B. The per unit prices in each year are given in the table below. Year 1 Year 2Good A $500 $300Good B $550 $350Assuming year 1 to be the base year, find the level of inflation using GDP deflators. Correct Answer  12.11% You Answered  9.8%   10.1%   13.7%

The data in the table describes the aggregate demand curves before and after an increase in government spending, where real GDP is expressed as the percent deviation from potential GDP, and inflation is expressed as a percentage. Real GDP (Before) Real GDP (After) Inflation3.0 4.5 2.01.5 3.0 3.00 1.5 4.0–1.5 0 5.0–3.0 –1.5 6.0In the long run, what is the inflation rate after the increase in government spending?Responses1.5%1.5%4.0%4.0%5.0%5.0%6.0%

Use the data in the table to answer the question.  2020 2021  Price Quantity Price QuantitySmartphones $500 75 $750 100Smart TVs $200 100 $380 150An economy's GDP consists only of smartphones and smart TVs. Based on the data in the table, what was the difference between the economy’s nominal GDP in 2020 and 2021?The difference in nominal GDP between these two years was $

Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Product Quantity Base year price (2010) Price (2019) Price (2020) Pencils 8 $2 $3 $3.50 T-shirts 15 $5 $7 $6.75 Bananas 5 $1 $1.50 $1.75 -1.1% 1.1% -1.9% 1.5% 1.9%