Suppose a simple economy produces five goods: books, bagels, coffee beans, coffee, and military drones (given the strict laws on the island, military drones are only available for purchase by the government).Assume all the coffee beans are used to make coffee (therefore coffee beans are an intermediate good). Additionally, the economy consumes and imports clothes from a foreign country (HINT: Clothes would be both a consumption good and an import, so should it count in final GDP?).The production numbers for the domestic goods and foreign goods are below:

	Year 2018	Year 2019
	Quantity	Price	Quantity	Price
Books	20	$30	25	$40
Bagels	120	$2.00	145	$3.00
Military Drones	90	$200.00	100	$210.00
Coffee	225	$2.00	250	$2.00
Coffee Beans	200	$0.60	220	$0.70
Clothes	100	$25	110	$26

1. Using 2018 as the base year, calculate the CPI in 2018. [Round two decimal places]

2. Using 2018 as the base year, calculate the CPI in 2019. [Round two decimal places]

3. Using 2018 as the base year, calculate the inflation rate using the CPIs. [Round two decimal places. Don't forget to put a % in the units box]

4.