Using a method similar to the cpi

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2011 karaoke 10 at $40, cds 30 at $10
2012 karaoke 12 at $60, cds 50 at $12.
a)using a method similar to the CPI, compute percentage change in the overall price level. Use 2011 as base year, and fix the basket at 1 karaoke machine and 3 CDs.
b)using a method similar to GDP deflator, compute the percentage change of the overall price level. 2011 base year.
c)Is the inflation rate in 2012 the same using the 2 methods why/whynot?

Reference no: EM13339085

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