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Assume that a country's citizens spend all oftheir income on pasta and tomatoes. 30 kilograms of pasta and 25 kilograms of tomatoes make up the
Assume that a country's citizens spend all oftheir income on pasta and tomatoes. 30 kilograms of pasta and 25 kilograms of tomatoes make up the market basket. Prices of pasta and tomatoes for the last three years are shown in the table below. tomatoes a) Compute the cost of the baskets in each year. (3 marks) b) Choose one year as a base year [2020) and compute the CPI in each year. (3 marks) c) Compute inflation rate in 2021 and 2022 and comment on the results. {2 marks)
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