Question 21.89

59. Suppose that inflation proceeds at a constant rate of 2% per year from mid-2015 through mid-2018.

  1. Find the cost in mid-2018 of a basket of goods that cost $1 in mid-2015.
  2. What will be the value of a dollar in mid-2018 in constant mid-2015 dollars?

59.

(a)

(b)