Part 1: Inflation

Year	CPI	Year	CPI	Year	CPI
1970	38.8	1990	130.7	2010	218.1
1971	40.5	1991	136.2	2011	224.9
1972	41.8	1992	140.3	2012	229.6
1973	44.4	1993	144.5	2013	233.0
1974	49.3	1994	148.2	2014	236.7
1975	53.8	1995	152.4	2015	237.0
1976	56.9	1996	156.9	2016	240.0
1977	60.6	1997	160.5	2017	245.1
1978	65.2	1998	163	2018	251.0
1979	72.6	1999	166.6
1980	82.4	2000	172.2
1981	90.9	2001	177.1
1982	96.5	2002	179.9
1983	100.0	2003	184
1984	103.9	2004	188.9
1985	107.6	2005	195.3
1986	109.6	2006	201.6
1987	113.6	2007	207.3
1988	118.3	2008	215.3
1989	124	2009	214.5

Based on the above table answer the following questions;

1. What year is the base year? (15) __________________________________________

2. In which year, did we experience deflation? (15) ______________________________

3. What was the rate of inflation between 1970 and 1980? (15)________________________

4. If you earned $10,000 in 1990, how much would you have had to earn in 2016 in order to maintain the same purchasing power? (5) ___________________________________