Please answer all questions showing full workout

Part 2: Calculate It- The chart shows the price of market baskets from 2023 to 2027 for the nation of Macrostan. Assume that 2025 is the base year. Use the data to complete the following. Year Basket Price 6. What is the CPI of 2023? 10. What is the CPI of 2027? 2023 $250 7. What is the CPI of 2024? 11. What is the annual inflation 2024 $400 rate of 2024? 2025 $500 8. What is the CPI of 2025? 12. What is the annual inflation 2026 $550 9. What is the CPI of 2026? rate of 2025? 2027 $700 Part 3: Check Your Understanding- Complete the following. 13. If a country is experiencing disinflation, does the CPI increase or decrease? Explain. 14. Assume that economists expect the inflation rate to be 5% so you negotiate a 5% increase in your nominal wage. If the actual inflation rate is 3%, will your real wage increase, decrease, or stay the same? Explain. 15. Assume that economists expect the inflation rate to be 2% but the actual inflation rate turns out to be 5%. If banks gave out a large number of fixed rate loans at a 6% interest rate, who is better off because of the unexpected inflation, the lenders or borrowers? Explain your reasoning