b. Assume the quantity of goods purchased in each category, that is, the market basket, is identical for 2006 and 2007.

Calculate an inflation rate for each type of college student between 2006 and 2007.

2002 2003 2004 2005 2006 Real GDP

(billions of 2000 dollars) $10,048.8 10,301.0 10,675.8 11,003.4 11,319.4 Nominal GDP

(billions of dollars) $10,469.6 10,960.8 11,685.9 12,433.9 13,194.7 Cost of college education (averages in 2006 dollars)

Tuition and fees Books and supplies Room and board Transportation Other expenses Two-year public college: commuter $2,272 $850 $6,299 $1,197 $1,676 Four-year public college: resident 5,836 942 6,690 880 1,739 Four-year public college: commuter 5,836 942 6,917 1,224 2,048 Four-year public college: out-of-state 15,783 942 6,960 880 1,739 Four-year private college: resident 22,218 935 8,149 722 1,277 Four-year private college: commuter 22,218 935 7,211 1,091 1,630 Cost of college education (averages in 2007 dollars)

Tuition and fees Books and supplies Room and board Transportation Other expenses Two-year public college: commuter $2,361 $921 $6,875 $1,270 $1,699 Four-year public college: resident 6,185 988 7,404 911 1,848 Four-year public college: commuter 6,185 988 7,419 1,284 2,138 Four-year public college: out-of-state 16,640 988 7,404 911 1,848 Four-year private college: resident 23,712 988 8,595 768 1,311 Four-year private college: commuter 23,712 988 7,499 1,138 1,664