1. A group of students met in a summer course on macroeconomics. They all love music and single karaoke. They moved together to an island, on which they produced and consumed only karaoke machines and CD3. The following table show the amounts they produced in 2018 and 2019: Karaoke Machines CDs Year Quantity Price Quantity Price 2018 10 $40 30 $10 2019 12 $60 50 $12 (a) Using 2018 as the base year, compute the percentage change in the CPI of the island from 2018 to 2019. Fix the basket at 1 hraoke machine and 3 CD5. (b) Using 2018 as the base year, compute the percentage change in the GDP deator of the island from 2018 to 2019. (c) Is the ination rate in 2019 the same using the two methods? Why