(i)Given that 2019 is the base year, calculate the CPI for 2020 and determine the inflation rate between 2019 and 2020. (ii)Provide two reasons that the CPI may not reflect the actual cost of living of households accurately.

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A: Answer to the question is as follows :

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Q: Suppose a house that was worth $68,000 in 1987 is worth $104,000 in 2004. Assuming a constant rate…

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Q: The consumer price index (CPI) has increased from 80 to 88. Calculate the inflation rate

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Q: Inflation is primarily measured by changes in: (A) GDP (B) CPI (C) GNP (D) HDI

A: Step 1:Inflation refers to the rate at which the general level of prices for goods and services is…