1.Suppose that the Consumer Price Index (CPI) for some economy was equal to 182.6 at the end of 2019 and equal to 185.2.2 at the end of 2020.

a.Calculate the inflation rate for 2020.

b. Suppose the median wage was $35,000 in the base year when the CPI was set equal

to 100.If the median wage at the end of 2020 is $60,000, has real wages increased,

decreased, or remained the same since the base year? Explain your answer.