Order Your Paper From the most reliable Essay writing Service. 

.

 



1. A country consumes only two goods: apples and
bananas. In 2005 they bought 100 units of apples for $2 each and
200 units of bananas for $4 each. In 2010 they bought 150 units of
apples for $3 each and 250 units of bananas for $5 each. Calculate
the CPI for each year using 2005 as the base year and using that
period’s quantities as the CPI basket. Use this to fill in the
following table. (Make sure to use your CPI numbers to do
this.)

Year NGDP Price Level (CPI) RGDP

2005

2010