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Consider an economy producing the following products: bread and cars. Use the information provided in the following table to answer the question below:
Product
Quantity
Base Year Price (2012)
Price (2019)
Price (2020)
Bread
1000
$20.00
$22
$24
Cars
2000
$8.00
$10
$12
Refer to the table above to answer the questions below:
a) Compute the consumer Price Index for years 2019 and 2020 using 2012 as the base year and the consumption basket that consist of 1000 bread and 2000 cars. You will need to round your answer to the nearest whole number.
b) Compute the Inflation rate for 2020
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