3. This question studies how inflation has varied across time and space in the United States. a. Using FRED, acquire the following data series: Consumer Price Index for All Urban Consumers: All Items (FRED Code \"CPIAUCSL"), Consumer Price Index for All Urban Consumers: All items in New York-Newark-Jersey City, NYNJ-PA [FRED Code "CUUSA10lSAO"), Consumer Price Index for All Urban Consumers: All Items in Detroit-Warren-Dearborn, MI [FRED Code \"CU URAZOBSAO" ). With all these data series, focus on on the data from 1990 and on, at an annual frequency. For the aggregation method use " end of the period." Revised: February 2. 2023 Economics of Global Business Problem Set #1 b. Graph the all three CPI's (the level, not the growth rate) on a well-labeled figure. Construct a similar table as that displayed below, by computing the annual growth rates {see notes on Computing growth to calculate annual rates) of the CPI by location and over 10 year horizons. 19902000 20002010 20102020 20202022 19902022 Growth Rate of CPI: All Urban Consumers Growth Rate of CPI: NY Area Growth Rate of CPI: Detroit Area c. Speculate as why the cost of living has grown differentially in the New York Metropolitan area relative to the Detroit Metropolitan area. Hint: In FRED you can find CPI's by location for housing. And in FRED you can find CPI's by location less shelter (i.e. not including housing or rent). d. What happened to inflation in these two locations after 2020? Speculate why the inflation is different in these locations since the beginning of the Pandemic. (Hint: look at the CPI Shelter in each region and the CPI less shelter). e. Suppose that you are a twin. And you and your twin graduated from NYU in 1989. Your twin took a job in Detroit and has remained there. And her nominal salary increased with the rate of the CPI for All Urban Consumers. You took a job in Manhattan and your nominal salary increased with the rate or the CPI of All Urban Consumers. Who is better off you or your twin? In a narrow sense? In a broad sense? Why or why not? Please provide an argument for and an argument against