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Consider an rule that produces and consumes bread and automobiles.In the subjoined board are postulates for two incongruous years.
a.Using 2000 as the vile year,abuse the subjoined statistics for each year:nominal GDP,veritable GDP,the implicit
expense deflator for GDP,and a fixed-weight expense condemnation such as the CPI.
b.How greatly did expenses loosen between 2000 and 2010?Compare the answers ardent by the Laspeyres and Paasche expense condemnationes.Explain the discord.
c.Suppose you are a aristocratic congeniality a score to condemnation Social Security and federal pensions.That is,your score will direct these benefits to offset changes in the consume of assistance.Will you use the GDP deflator or the CPI?Why?