a)A representative basket of goods cost $ 215.00 in 2017, $236.50 in 2018 and $268.75 in 2019.

Assuming that the base year is 2007, calculate

(i)The price index for each year

(ii)The rate of inflation in 2018 and 2019.

b)The GNP in current prices, of the country for which prices are represented in Part a above is $ 14828 million in 2017, $ 16014 million in 2018 and $ 18576 million in 2019. Bearing in mind the figures in Part a determine:

(i)The year in which the economy contracted and the rate of contraction.

(ii)The year in which the economy expanded and the rate of expansion.