The table below shows output and prices during 2015 in a hypothetical economy that produces only two goods-sweat shirts and bags of chips. Use the table to respond to the questions below, writing out price index values as whole numbers without decimals e.g. 110, and monetary values in dollars and cents e.g. $1.00.
|
Output in 2015
|
Prices in 2015
($)
|
Prices in 2014
($)
|
|
Sweat shirts
|
7
|
18.00
|
12.00
|
|
Bags of chips
|
75
|
2.20
|
1.90
|
a. The total value of the economy's output in 2015 valued in 2015 prices is $.
b. The total value of the economy's output in 2015 valued in 2014 prices is $.
c. The value of the GDP deflator in 2015 if 2014 is treated as the reference year is .
d. The GDP deflator differs from the consumer price index in that the GDP deflator includes (Click to select)a small subset of productsall products produced in the economy and weights prices in both the current and reference year in terms of (Click to select)reference yearcurrent year quantities.