4. Suppose that in 1994 the total output in a single-good economy was 7000 buckets of chicken. Also suppose that in 1994, each bucket of chicken was priced at $10. Finally, assume that in 2015, the price per bucket of chicken $16 and that 22,000 buckets were produced.
a. Determine the GDP price index for 1994, using 2015 as the base year. You MUST clearly show the formula, and your work.
b. Determine the GDP price index for 2015 (again, using 2015 as the base year).
c. By what percentage did the price level, as measured by this index, rise between 1994 and 2015? You MUST clearly show the formula, and then your work.