Use the table below to answer questions 20-23 The table below shows the 'hypothetical' basket(s) of consumption goods for a 'typical' Penn State...

Use the table below to answer questions 20-23

The table below shows the 'hypothetical' basket(s) of consumption goods for a 'typical' Penn State college student for 2016 and 2017.

2016 Basket for 'typical PSU college student'2017 Basket for 'typical PSU college student'ItemPriceQuantityItemPriceQuantityTextbooks$1006Textbooks$1106Rent$7501Rent$8501PSU sporting events$156PSU sporting events$203Dinners in State College$206Dinners in State College$208

Assume 2016 is the base year. The rate of inflation between 2016 and 2017 is _____%. 

NOTE: calculate the rate of inflation using price indexes.

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Question 21

3 pts

Now update the base year to 2017. The rate of inflation between 2016 and 2017 is now _____%. 

NOTE: calculate the rate of inflation using price indexes.

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Question 22

3 pts

Which rate of inflation accounts for the substitution bias?

the inflation rate calculated using 2016 as the base year

the inflation rate calculated using 2017 as the base year

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Question 23

3 pts

The 'Chain Weighted' rate of inflation is ___%.