4.Go back to the same example from question 3, just above. Consumers in theeconomy like two goods: hot dogs and hamburgers. Prices and quantities consumedare the same as before.(a) As a first step in computing the consumer price index (CPI), the Bureau of LaborStatistics surveys consumers to determine the 'basket of goods' purchased by atypical consumer. Using 2015 as your base year, what is the basket of goods inthis economy?(b) What is the cost of the basket in each year: 2015, 2016, and 2017?(c) Still using 2015 as the base year, what is the CPI in each year: 2015, 2016, and2017?(d) What is the inflation rate in 2016 and 2017?2(e) Is percentage change in the CPI between 2015 and 2016 in this question largerthan, smaller than, or the same as the percentage change in the GDP deflatorbetween 2015 and 2016 in question 3? What explains the difference, if any? 3.Consider a simple economy in which only two goods are produced and sold: hotdogs and hamburgers. The prices and quantities produced of these two goods over athree-year period are shown in the table below.Priceof Hot Quantity of Hot Price of Ham- QuantityofYearDogsDogsburgersHamburgers2015$14$232016$25$442017$4$5(a) Calculate nominal GDP in 2015, 2016, and 2017.(b) Next, using 2015 as your base year, calculate real GDP in 2015, 2016, and 2017.(c) Finally, calculate the GDP deflator for 2015, 2016, and 2017.(d) Does the GDP deflator rise between 2015 and 2016? Why or why not?

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4. Go back to the same example from question 3, just above. Consumers in the economy like two goods: hot dogs and hamburgers. Prices and quantities consumed are the same as before. (a) As a first step in computing the consumer price index (CPI), the Bureau of Labor Statistics surveys consumers to determine the 'basket of goods' purchased by a typical consumer. Using 2015 as your base year, what is the basket of goods in this economy? (b) What is the cost of the basket in each year: 2015, 2016, and 2017? (c) Still using 2015 as the base year, what is the CPI in each year: 2015, 2016, and 2017? (d) What is the inflation rate in 2016 and 2017?