Latteland is a fictional country that produces lattes and

Question

Latteland is a fictional country that produces lattes and mochas. The following represents their production for 2016 and 2017.

LatteLand Production

2016

Price Quantity Price ($) (thousands of units) ($) Lattes $5 10 $5

2017 Quantity

(thousands of units) 12

Mochas $4 5 $5 5

Using 2016 as the base year. Calculate

1. a) 2017 nominal GDP.
2. b) 2017 real GDP.
3. c) 2017 GDP Deflator
4. d) 2017 CPI.
5. e) Calculate the nominal growth rate of the economy between 2016-2017.
6. f) Calculate the real growth rate of the economy between 2016-2017
7. g) Calculate the inflation rate between 2016-2017 using the GDP Deflator and the CPI.