a)The following table shows the price of a specific stereo receiver for a five-year period.

Using year 3 as the base year, calculate the price index for each year.

YearPricePrice index

1$88___

2$100___

3$120___

4$132___

5$140___(5 marks)

b)i)Define the term fiscal policy.(2 marks)

ii)State and briefly discuss any FOUR fiscal policy instruments that a country like Kenya can use to influence its economic performance. (8 marks)