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{E} In a simple economy. people only produce and consume three goods. The following table summarizes the data of production and consumption for the past
{E} In a simple economy. people only produce and consume three goods. The following table summarizes the data of production and consumption for the past three years. Price of Quantity Price of Quantity Price of Quantity bread 12{5] of bread shirt [5] of shirt 'ean [S] of" ean "' base year Ii} Compute the cost of the basket ofgoods in each year based on the method of consumer price index. {5 marks] Iii] Calculate the Consumer Price Index ICPI] in each year. Round your answer into 2 decimal places if applicable. {3 marks] [iii] Use the Consumer Price Index [CPI] to compute the inflation rate of 2-521. Round your answer into 2 decimal places if applicable. {1 mark]
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