1) Which of the following best describes the consumer price index (CPI)? (3pts) . The change in prices that a consumer would have to pay for a fixed set of goods as a percentage of the same goods in a base year The cost inputs purchased by firms in a year divided by the price of the same inputs in a base year expressed as a percentage The dollars a person needs in order to buy a fixed collection of goods in a a year, compared to a base year Real GDP produced in one year divided by the real value of that GDP in another year The cost of labor purchased by firms in a year divided by the cost of the same amount of labor in a base year expressed as a percentage 2) The table below shows the consumer price index (CPI) over several years for (4pts) Bloominonionland. Year CPI 2015 94 2016 100 2017 104 2018 103 Which of the following conclusions can be drawn based on this data? 2015 is the base year Prices increased over all four years real GDP increased every year except between 2017 and 2018 Prices increased between 2015 and 2017, but decreased between 2017 and 2018 The bundle of goods changed each year 3) Which of the following is a valid criticism of the consumer price index (CPI)? (3pts) The CPI overstates the actual burden of inflation because people can look around costlessly for cheaper goods when prices increase. The CPI understates the actual burden of inflation because the price changes are due to quality improvements. The CPI understates the burden of inflation on households because households can substitute cheaper goods for more expensive goods when prices increase. The CPI overstates the burden of inflation on households because households can substitute cheaper goods instead of more expensive goods when prices increase