How do we calculate CPI with the inflation rate?

1. Suppose the CPI in 2018 was 125.

• If we expect an inflation of 10% this year (2019), CPI in 2019 will =137.5 (How did we get this answer?)

• If we expect a deflation of 10% this year (2019), CPI in 2019 will =112.5 (How did we get this answer?)

Also can you please explain the below questions in the image?

Relationship between money growth and inflation. Consider an economy which only produces corn. The economy has enough labor, capital, and land to produce Y: 1000 bushels of corn. V is constant. In 2008, M = $2000, P = $4/bushel. - How many times does a currency not changes hand in this case? 2 V 0 What is value of the nominal GDP in 2008? $ 2000 X Suppose in 2009, the government increased money supply by 10%. 0 What is value of M in 2009?. $ X 0 Assuming there is no change in Y, what is P in 2009? X 0 What is the inflation rate between 2008 and 2009? X %. - Inflation rate in this case X the growth rate of money supply. Now assume, Y increased by 4.25%, and M increased by 10%. (use 2 significant digits after the decimal in your answer} 0 What is the growth rate of real GDP? X % 0 What is the price level in 2009? X 0 What is the inflation rate between 2008 and 2009 in this case? X %