Query 1: Suppose that an financial system consists of solely two forms of merchandise:bread and vehicles. Gross sales and worth information for these two merchandise for 2 completely different years are as follows:YEARNo. of bread20062012500,000400,000Value of breadsold$10$20No. ofautomobiles bought200240Value ofautomobiles$25,000$30,000a. (2 factors) Calculate nominal GDP in 2006 and 2012.b. (2 factors) Calculate actual GDP in 2006 and 2012, utilizing 2006 as the bottom yr.c. (2 factors) Calculate the GDP deflator in 2006 and 2012, utilizing 2006 as the bottom yr.d. (2 factors) Calculate the buyer worth index in 2006 and 2012, utilizing 2006 as the bottom yr.e. (2 factors) Calculate the speed of inflation in 2012 through the use of the GDP deflator.f. (2 factors) Calculate the speed of inflation in 2012 through the use of the CPI.g. (1 factors) Clarify why your solutions in elements e and f are completely different.Query 2: Think about a closed financial system described by the next equations_Y=C+I+GY = 5,000G = 1,000T = 1,000C = 250 + zero.75 ( Y T )I = 1,000 50 * r a. (three factors) On this financial system, compute personal saving, public saving, and nationwide saving.b. (2 factors) Discover the equilibrium rate of interest.c. (2 factors) Draw a graph containing the saving and funding curves for this financial system. Present the marketplace for loanable funds equilibrium.d. (2 factors) Now suppose the G rises to 1,250. Compute personal saving, public saving, and nationwide saving.e. (2 factors) Discover the brand new equilibrium rate of interest.f. (1 factors) On a brand new graph, draw the funding curve and the brand new saving curve. Present the brand new equilibrium available in the market for loanable funds.