1. Inflation: Create an energy price index for Minnesota and then for California and then calculate inflation rates for energy for both states. For all calculations, show your work. Minnesota Prices Energy 2021 2022 Quantity Electricity S 0.1354 $ 0.1405 9804 kWh Gasoline 5 3.16 S 3.59 356 gallons Natural Gas $11.72 $11.46 71.54 \"thousand cubic feet\" a. Use the table above to create a Market Basket of Energy for Minnesota. The table shows the prices of 3 common energy types supplied in 2021 and 2022 and the quantities of each type of energy that consumers bought in 2021, the base year. Construct an energy price index: calculate the price index in 2021 and 2022. Show your work. b. Calculate the inflation rate for Minnesota between 2021 and 2022. California Prices Energy 2021 2022 Quantity Electricity 5 0.2387 S 0.2614 6684 kWh Gasoline 5 4.44 S 5.23 437 gallons Natural Gas 5 18.19 $20.34 54.78 \"thousand cubic feet" c. Use the table above to create a Market Basket of Energy for California. The table shows the prices of 3 common energy types supplied in 2021 and 2022 and the quantities of each type of energy that consumers bought in 2021, the base year. Construct an energy price index: calculate the price index in 2021 and 2022. Show your work. d. Calculate the inflation rate for California between 2019 and 2020. e. What is likely the main reason behind the differences between the two inflation rates? Be specific in your answer. 2. What is NOT included in core inflation calculation? Why might policy makers want to know about core inflation compared to \"regular\" inflation