Please answer the following questions.Thanks. 1. IAn economy produces goods X and Y but consumes goods Y and Z. Quantities and pricesper unit for years 2005 and 2006 are as follows:2005Good XGood YGood ZQuantity104Price$2000$1000$12006Quantity1261000Price$3000$500$11000The base year is 2005a. Compute the real output (GDP) growth rate from 2005 to 2006.b. Compute the inflation rate from 2005 to 2006 using the GDP deflator.c. Compute the inflation rate from 2005 to 2006 using the CPI.

The inflation rate is the rate at which the price level rises over a given period of time. It is…

1. IAn economy produces goods X and Y but consumes goods Y and Z. Quantities and prices per unit for years 2005 and 2006 are as follows: 2005 Quantity 10 Price 4 2006 $2000 $1000 $1 Good X Good Y Good Z 1000 • The base year is 2005 a. Compute the real output (GDP) growth rate from 2005 to 2006. b. Compute the inflation rate from 2005 to 2006 using the GDP deflator. c. Compute the inflation rate from 2005 to 2006 using the CPI. Quantity 12 6 Price 1000 $3000 $500 $1