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The first two columns of the table below describe the goods and quantities included in your current monthly consumption. Suppose you have been able to
The first two columns of the table below describe the goods and quantities included in your current monthly consumption. Suppose you have been able to use all of your monthly income (no savings) to afford this level of fixed consumption over the last few years despite the increase in the cost of living. - Round all expenditure calculations to the nearest dollar. - Round CPI and inflation (expressed as an integer) to 1 decimal place. - Carry your rounded figures throughout the rest of the problem. m- 2019 2020 _ 335k? Prices Prices Item Prices Quantities Meal Kit Delivery $106.00 .- 510100 $110.25 _-\"- _-_-I- _-_\" Part (a): Using the quantities specified in the 2018 basket of goods, calculate the CPI for 2018, 2019 and 2020. Part (b): What is the inflation rate between 2018 and 2019? 2019 and 2020? Part (c): Suppose inflation is expected to remain constant for future years. At the end of December 2020, your boss offers you the opportunity to start a new position in January 2021 that pays a monthly salary of {$3,947.92} and increases by 5.5% every year. Should you leave your current job and accept the new offer? Use 1 2 sentences to explain your
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