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Hi i need some help with these questions which is based on deflation during corona virus. Question 1: CPI during COVID-19 The consumer price index

Hi i need some help with these questions which is based on deflation during corona virus.

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Question 1: CPI during COVID-19 The consumer price index (CPI) in Australia measures how prices for a fixed basket of goods and services comprising items bought by Australian households change over time. For example, the ABS report for the CPI in the June 2020 quarter is available at: https://www.abs.gov.au/ausstats/abs@.nsf/mf/6401.0 The report states that prices fell 1.9% in the June 2020 quarter, compared to a rise of 0.3% in the March 2020 quarter. Watch the following YouTube video for more information on this. We're in deflation for the first time in 22 years (12:18) https://www.youtube.com/watch?v=ISLTRyOpayo The figure below, which is Figure 8.2 from the text, shows the CPI market basket for Australia used by the ABS.33395 {a} Using data on consumer spending from the following website that tracks consumer spending during the COW-19 period thtgasffalphabetacomfmkm g3], provide a critique on the calculation of the CPI in the June 202i} quarter by the ABS. [Note that the consumer spending indices reect price X quantity of items purchased}. (b) Assume that prices in two of the twenty categories listed in the website in part {a} [food delivery; furniture and office) have increased by 8 percent since the start of CDVDJ-IQ [i.e. between J anto July solo), while prices for two other categories {travel and taxiirideshare] have decreased by It) percent. Assume that prices ar the remaining 16 categories remain constant. Explain what effect this will have on the ination rate, and how you arrived at your conclusion, including any assumptions that you make

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