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Help me with Macroeconomics Qs The CPI is used to measure the cost of a typical basket of goods. The typical household in the nation

Help me with Macroeconomics Qs

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The CPI is used to measure the cost of a typical basket of goods. The typical household in the nation of Jacksonia buys 4 loaves of bread, 3 pounds of cream cheese, and 8 books each week. The price of these goods in years 2015, 2016, and 2017 are given below: Year Price of Bread Price of Cream Price of a book Cheese 2015 $1 $3 $10 2016 $2 $6 $20 a. 2017 $3 $6 $25 b. Calculate the CPI for 2015 using 2016 as the base year. c. Calculate the rate of inflation between 2015 and 2016. d. Calculate the rate of inflation between 2016 and 2017. e. Describe a reason why the inflation rate between 2016 and 2017 might overstate changes in the cost of living

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