1.Amazon.com agreed to pay its workers $20 an hour in 1999 and $22 hour in 2001. The price level for these years was 166 in 1999 and 180 in 2001. Calculate the real wage rate in each year. Did these workers really get a pay raise between 1999 and 2001?

2.A typical family on Sandy Island consumes only juice and cloth. Last year, which was the base year, the family spent $40 on juice and $35 on cloth. In the base year, juice was $4 a bottle and cloth was $5 length. This year, juice is $4 a bottle and cloth is $6 a length. Calculate

a)The CPI basket.

b)The CPI in the current year.

c)The inflation rate in the current year.