Suppose the typical basket of goods and services consists of 10kg of meat at $3 per kg and 50 bus tickets at $2 per ticket.
i.) If both prices increase by fifty cents during the year, what ist he CPI for nex tyear if this year is the base year?
ii.) If the current exchange rate is 0.4 punds sterling per Canadian dollar ($C), and the current prices in Britian are 1 pound sterling per kg of meat andone pound sterling per bus ticket, what is the this year's PPP exchange rate between the pound sterling and the Canadian dollar ($C)?