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Assume an economy in which only apple and orange are produced. In year 1, 400 million killograms of apple are produced and consumed and its

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Assume an economy in which only apple and orange are produced. In year 1, 400 million killograms of apple are produced and consumed and its price is $1.8 per kilogram, while 450 million killograms of orange are produced and consumed and its price is $1.9 per killogram. In year 2, 380 million kilograms of apple are produced and consumed and its price is $2.3 per kilogram, while 470 million kilograms of orange are prduced and its price is $1.7 per kilogram. (Show the results upto 1 decimal point when required) (a) If the base year is year 1 then the inflation rate between years 1 and 2 is 6.09% (b) If the base year is year 2 then the inflation rate between years 1 and 2 is % (c) The chain weighted inflation rate between year 1 and year 2 is (d) If the base year is year 1 then CPI inflation rate is 6.98%

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