Exhibit: Quantity Consumed and Price of Good $$\begin{array}{l}&\text { Base Year}&\text { Later Year}\\\text { Price of good }&100&200\\\end{array}$$

Essay

Exhibit: Quantity Consumed and Price of Good

$$\begin{array}{l}&\text { Base Year}&\text { Later Year}\\\text { Price of good }&100&200\\\end{array}$$

In the exhibit, the citizens of country XYZ come to desire more of good A. As a result, the quantity and price of the good both rise.
$$\begin{array}{l}\text {Quantity of good A }&100&200\\\text {Price of good B }&100&100\\\text {Quantity of good B }&100&100\\\end{array}$$

a. Compute nominal GDP in the base year and later year.
b. Compute real GDP in the base and later years (in base-year prices).
c. Compute the GDP deflator in the later year, using your answers to parts a and b.-
d. Compute a fixed-weight price index for the later year, using the base-year quantities as weights.
e. Which price index rises faster, the GDP deflator (Paasche) index or the fixed- weight index (Laspeyres) index?