1、Macroeconomics1、2、3、4、Abby consumes only apples. In year 1, red apples cost 1 dollar each, green apples cost 2 dollar each, and Abby buys 10 red apples. In year 2, red apples cost 2 dollar, green apples cost 1 dollar, and Abby buys 10 green apples.a. Compute a consumer price index for apples for eac
2、h year. Assume that year 1is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2?b. Compute Abbys nominal spending on apples in each year. How does it change from year 1 to year 2?c. Using year 1 as the base year, compute Abbys real spending on apple
3、s in each year. How does it change from year 1 to year 2?d. Defining the implicit price deflator as nominal spending divided by real spending, compute the deflator for each year. How does the deflator change from year 1 to year 2?Suppose that Abby is equally happy eating red or green apples. How muc
4、h has the true cost of living increased for Abby? Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indexes? a. According to the CPI(消費物價指數), prices have doubled.b. N-spendingisthetotalvalueofoutputproducedineachyear. InY1andY2, Abbybuys10applesfor$1each, soherN-spendingremainsconstantat$10.c. R-spendingisthetotalvalueofoutputproducedineachyearvaluedatthepricesprevailinginY1.InY1,thebaseyear,herR-spendingequalsherN-spendingof$10. Inyear
