Question: (a) Compute the equivalent annual inflation rate, based on the consumer price index, for the period from 1981 to' 1986. (b) Using the equivalent annual

(a) Compute the equivalent annual inflation rate, based on the consumer price index, for the period from 1981 to' 1986.
(b) Using the equivalent annual inflation rate computed in part (a), estimate the consumer price index in 1996, working from the 1987 Consumer Price Index.

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