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  3. 3 consider an economy that produces oranges and boomerangs the...

Question: 3 consider an economy that produces oranges and boomerangs the...

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3. Consider an economy that produces oranges and boomerangs. The prices and quantities of these goods in two different years are reported in the table below. Fill in the missing entries. % change 2017-18 Quantity of oranges Quantity of boomerangs Prices of oranges (dollars) Prices of boomerangs (dollars) 3 Nominal GDP Real GDP in 2017 prices 2017 100 20 2018 108 30 1.10 3.15 Real GDP in 2018 prices 4. a. Using the data in Question 3, calculate the rate of inflation from 2017-2018 based on the GDP deflator with base year 2017. b. Calculate the rate of inflation from 2017-2018 based on the Consumer Price Index, assuming the 2017 quantities given in Question 3 are the consumer basket. c. If they are different, why?

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