Inflation from one year to the next was 4.0% as measured by consumer price index (CPI).

(a) Find the increase in cost of goods and services of a Family with an annual income( after-tax) and budget of $45000.00 due to inflation.

(b) Find the cost of goods and services of this Family next year If this Family receives only 2.0% after-tax increase in pay for the year find:

(c) The after-tax increase in income of this family (d) The Familys new after-tax income

(e) The loss in purchasing power of this family due to inflation.