Hi, could you show the calculation of processes and answer

a)A piece of jewellery was worth $15,000 in 1965, and has increased in nominal terms by 2.5 times between 1965 and 2005. CPI in 1965 was 85 and by 2005 stood at 160.

(i)Calculate the rate of inflation between 1965 and 2005.

(ii)If this piece of jewellery had risen in price at the rate of inflation, what would it be worth in 2005?

(iii)Your great-aunt Theresa thinks the jewellery is worth much more in 2005 than it was in 1965. Do you agree or disagree with her? Justify your answer.

(b) Christina's boss has just given her a 2% pay rise this year, yet this still reduces her standard of living. How can this be so? Explain your thought process with respect to the concept of wages.