The following table shows the market basket for a normal household and the unit prices for the items

1. The following table shows the market basket for a normal household and the unit prices for the items in the basket for different years.

Market Basket	Unit Prices in 2000	Unit Prices in 2001	Unit Prices in 2002
60 hotdogs	$2	$3	$3
10 gallons of milk	$4	$5	$4
5 T-shirts	$20	$25	$30
4 movie tickets	$6	$8	$10

What is the annual inflation rate in 2002 (as measured by the percent change in the CPI from 2001 to 2002)?

2. The following table represents GDP data for Macroland for selected years.

	2007	2008	2009
	Quantity	Unit Price	Quantity	Unit Price	Quantity	Unit Price
Apples	300	$4	400	$4	300	$5
Bananas	500	$3	700	$5	800	$4
Oranges	1,000	$1	$800	$1	$1,200	$2

Using 2007 as the base year, find the GDP deflator in 2009. Calculate the annual inflation rate in 2009 (as measured by the percent change in the GDP Deflator from 2008 to 2009).

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