Use the information as provided in question 3 to answer the following two questions:

(a) Calculate inflation in 2021 by the GDP deflator method (3 points)

(b) Assume the basket is 1 car and 1 bushel of wheat. Calculate inflation in 2021 using the CPI method (3 points)

Show your work

This is the information from 2021

The country produces 100 cars and 200 bushels of wheat in 2020. The price of cars is $10,000 and the price of each bushel of wheat is $50.

In 2021, the country produces 200 cars and 100 bushels of wheat. The price of cars is $12,000 and the price of each bushel is $100.