GDP and CPI: Tracking the Macroeconomy - End of Chapter Problem CPI The consumer price index, or CPI, measures the cost of living for a typical urban household by August 2019 multiplying the price for each category of expenditure (housing, food, and so on) by a measure of Housing 1605 the importance of that expenditure in the average consumer's market basket and summing overall categories. However, using data from the consumer price index, we can see that changes in the cost Food 162 2 of living for different types of consumers can vary a great deal. Let us compare the cost of living for a hypothetical retired person and a hypothetical college student. Let us assume that the market Transportation 146.4 basket of a retired person is allocated in the following way: 10% on housing. 15% on food, 5% on Medical Care 210.8 transportation, 60% on medical care, 0% on education, and 10% on recreation. The college student's market basket is allocated as follows: 5% on housing, 15% on food, 20% on Education 266.8 transportation, 0% on medical care, 40% on education, and 20% on recreation. The accompanying Recreation 1204 table shows the August 2019 CPI for each of the relevant categories. Calculate the overall CPI for the retired person and for the college student by multiplying the CPI for each of the categories by the relative importance of that category to the individual and then summing each of the categories. The CPI for all items in August 2019 was 158.4. Round your answers to two places after the decimal. CPI for the retired person: CPI for the student