
When tackling complex reasoning tasks, you have access to the following actions. Use them as needed to progress through your thought process.

[ASSESS]

[ADVANCE]

[VERIFY]

[SIMPLIFY]

[SYNTHESIZE]

[PIVOT]

[OUTPUT]

You should strictly follow the format below:

[ACTION NAME]

# Your action step 1

# Your action step 2

# Your action step 3

...

Next action: [NEXT ACTION NAME]


system
Let’s consider the country of Wonder where only three goods are produced and consumed: goods alpha, beta, and gamma. The consumption volumes and prices in the years 2009 and 2015 are provided in the table below.

|  | Year 2009 |  | Year 2015 |  |
| :--- | :--- | :--- | :--- | :--- |
|  | Price | Quantity | Price | Quantity |
| Good Alpha | 5 | 12 | 6 | 15 |
| Good Beta | 7 | 8 | 5 | 10 |
| Good Gamma | 9 | 6 | 10 | 2 |

(a) Based on the data in the table, calculate:

1) The nominal and real GDP for 2009 and 2015, assuming that 2009 is the base year.
2) The growth rate of real GDP in %.

(b) As a measure of the level of inflation in the year of interest, some countries use the Consumer Price Index (CPI), which is calculated as the ratio of the cost of the base year's consumer basket at the prices of the year of interest to the cost of the base year's consumer basket at the base year's prices, multiplied by 100%. Calculate the CPI for 2015 using the data in the table.

(c) Economists believe that the CPI distorts the real level of inflation. One reason for such distortion is that the CPI is calculated based on the consumer basket of the base year rather than the year of interest. Provide at least one example that confirms the economists’ assumption and explain it reasonably.

Present the answer in LaTex format: \boxed{Your answer}
user