Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2019, 2020, and 2021.

The cost of each item in the basket and the total cost of the basket are shown for 2019.

Perform these same calculations for 2020 and 2021, and enter the results in the following table.

	Quantity in Basket	2019	2020	2021
Price	Cost	Price	Cost	Price	Cost
(Dollars)	(Dollars)	(Dollars)	(Dollars)	(Dollars)	(Dollars)
Notebooks	10	2	20	1		3
Calculators	1	50	50	54		75
Large coffees	200	1	200	1		1
Energy drinks	100	2	200	3		4
Textbooks	10	100	1,000	120		150
Total cost	5	5	1,470	5		5
Price index	5	5	100	5		5

Suppose the base year for this price index is 2019, In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2019 and 2020, the CSPI increased by . Between 2020 and 2021, the CSPI increased by Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. As the price of energy drinks increased relative to the price of coffee between 2019 and 2021, students decreased their consumption of energy drinks and increased their consumption of coffee. Professors required each student to buy 10 notebooks, regardless of the price. A new type of personal transporter, which made it easier to get around places like university campuses, became available for purchase. The quality of textbooks increased dramatically from 2019 to 2021, with textbook companies bundling new online study aids with their books.Kate currently earns a wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of sparkling water is $2.40 per gallon; in this case, Kate's wage, in terms of the amount of sparkling water she can buy with her paycheck, is gallons of sparkling water per hour When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a wage with those expectations in mind. If the price level turns out to be lower than expected, a worker's wage is than both the worker and employer expected when they agreed to the wage. Kate and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 2%, not 4%. For example, suppose the price of sparkling water rose from $2.40 per gallon to $2.45 per gallon. This means that between 2012 and 2013, Kate's nominal wage by % , and her real wage by approximatelySuppose Ane is a sports fan and buys only baseball caps. Ane deposits $3,000 in a bank account that pays an annual nominal interest rate of 109%. Assume this interest rate is fixed-that is, it won't change over time. At the time of her deposit, a baseball cap is priced at $15.00. Initially, the purchasing power of Ana's $3,000 deposit is baseball caps. For each of the annual inflation rates given in the following table, first determine the new price of a baseball cap, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Ana's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest baseball cap. For example, if you find that the deposit will cover 20.7 baseball caps, you would round the purchasing power down to 20 baseball caps under the assumption that Ana will not buy seven-tenths of a baseball cap. Annual Inflation Rate 0 % 10 % 139% Number of Caps Ana Can Purchase after One Year Real Interest Rate % When the rate of inflation is equal to the interest rate on Ane's deposit, the purchasing power of her deposit over the course of the year