AP Macro Topic 2.4 Price Indices and Inflation i is Assume that the next year s nominal wage rate fall be bos higher than the year s because of nilationare expectations. The actual inflation rate is 3'%. At the begirring of next year, will an nadiadust's real wage to higher, lover, of the same as today? Explan. 12. Assume that people expect the ination rate is be 2x in 2319 but in actuality & turns out to be 5's. If banks gave out a large rumber of fixed rate loans al a t's interest rate, who is better off because of the unexpected inlabor. the lenders or borrowers? Laplan your reasoning Part 4: Putting It All Together- Use me Lifted Stales CPI date in the fabio to answer the questions. Year CPI Consumer Price Index 1984-2018 CPI Year CPI Year GP Year 1984 1938 109 2005 196 2012 1985 2006 202 2013 1986 110 2090 172 2007 207 2014 1987 1954 2008 2016 1988 1995 41 2009 214 2016 240 1989 124 2003 2010 216 1 2017 245 1990 1897 2004 109 2011 2018 251 13. According to this chart (which year san prices double compared to the base year? Explain how you get your answer. 14. According to this chant. which year had the lowest infence inter Explain how you got your answer. 15. Calculate the inflation rate betasen the years 1897 and 2002. show your work. 8. Which has more purchasing paper, $400 in jest or saco in 20187 Explain your reasoning. 17. If your salary was $30.090 in tear and $60.000 in 2017, would you have more purchasing power in 1957 orin 20177 Explain your reasoning? Part S: Stretch Your Thinking- Answer the questions 18. The Cel tenes to estimate higher rates of inflation than other measures. Use the idea of substation blas to explain why this occurs."