Question 17 (15 marks) ITEM UNIT PRICE (2016) Rent, two $600 bedroom apt 60 Hamburgers $2.00 10 Movie tickets $6.00 UNIT PRICE (2019) $730 $250 $100 COST (2016) COST (2019) $600 $730 $120 $150 $60 $70 Part A: The table shows the data of the consumer price index (CPI) basket in Republic of Happiness. The base year is 2016. Use the data to calculate the CPI in 2016 and 2019 and the inflation rate in 2019. [5 marks] Part B: Australia and the USA are trading partners, and both countries operate flexible exchange regimes. The inflation rate in the USA is rising above Australia's inflation rate. i. How would the response of Australian residents and USA residents, including investors, to the lower relative Australian inflation rate impact the Australian dollar (AUD)? Explain in detail. [6 marks] ii. What would be the impact of the relatively low inflation in Australia on Australia's net exports in the short run and in the long run. Explain in detail. [4 marks] INSTRUCTIONS: 1. Type your answers in the space provided below. 2. Clearly label all parts