Danielle PietroTA: Samantha WongECON011023 March 2012Homework 8: Chapters 23-2523.4) Below are some data from the land of milk and honey,YearPrice of milkQuantity of milkPrice of honeyQuantity of honey2010$1100 quarts$250 quarts201112002100201222004100a. Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2010 as the baseyear.
b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2011 and 2012 from the preceding year. For each year, identify the variable that does not change. Explain in words why your answer makes sense.Year% Change nGDP% Change rGDP% Change GDPd2011200%200%02012150%0150%
c. Did economic well-being rise more in 2011 or 2012? Explain.
23.8) A farmer grows wheat, which he sells to a miller for $100. The miller turns the wehat into flour, which he sells to a baker for $150. The baker turns the flour into bread, which he sells to consumers for $180. Consumers eat the bread.