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The following table represents the nominal values of an item and the corresponding price index from 2009 to 2011.
Year Nomianl Value Price Index
2009 38 100
2010 40 103
2011 42 112
a. Compare the percentage change in the nominal values with the corresponding real values from 2009 to 2010.
b. Compare the percentage change in the nominal values with the corresponding real values from 2010 to 2011.
c. Use the price data to compute the inflation rate for 2010 and 2011.
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