1.Suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

Year 1

Good Quantity Price

Clothing. 40. 5

Food. 15. 9

Year 2

Good Quantity Price

Clothing 50. 8

Food 20 7

e) Using the chain-weighted method and Year 2 for the base year for quantities calculate the CPI for year 1.

f) Using the chain-weighted method and Year 1 for the base year for quantities calculate the CPI for year 2

g) Based on the chain-weighted CPI, what was inflation rate from year 1 to year 2?