Economics.Thank you

6. (a) For a composite (weighted) price index covering the three types of expenditure given in the following table, calculate the index for the current year. The base year value is 100. Show your workings. Category % of Income Prices of Item(s) Price of Item(s) spent on Item(s) in base year in current year. Food 35 8.50 12.75 Clothing & Footwear 15 37.50 45.00 Other Items 50 20.00 35.00 100 (20 marks) (b) Does the Consumer Price Index (CPI) accurately measure changes in the cost of living in Ireland? Explain your answer. (30 marks) (c) Over the past year the rate of inflation, as measured by the CPI, has fluctuated. Discuss the effects of this development on the Irish economy. (25 marks)7. (a) Define clearly the following terms: (i) Current Budget Surplus; (ii) Exchequer Borrowing Requirement; (iii) National Debt. (20 marks) (b) Discuss the main characteristics of a good system of taxation. (20 marks) (c) Discuss the main effects on the Irish economy of the reduction in rates of income tax in recent Government Budgets. (25 marks) (d) Explain what is meant by the term 'tax harmonisation'. (10 marks)