Practice: Chapter 29 (Consumer Price Index, CPI) A small economy set its target for 2002 year as follow: Natural rate of inflation = 5% . Potential GDP = $400 billion Suppose this economy produces only 3 goods: X. Y, Z. The following table shows the prices and quantities produced of these goods in 2020 and 2021; 2020 (Base year) 2021 Goods P(S) Q P(S) X 2 400 3 400 Y 5 300 4 200 Z 200 2 300 1. Compute the consumer price index (CPI) for each year. 2. What was the rate of inflation from 2020 to 2021, using the CPI you calculated in (1)? 3. Find the cyclical unemployment rate, if any exists. 4. Find the GDP gap in percentage term, if any exists. 5. Find the GDP gap, if any exists