Consider a simple economy where the basket of goods used to calculate the CPI contains two items: shirts and pants. The basket consists of 3 shirts and 2 pairs of pants. Each item increases in price by $1 in year 2. Use this information to complete the table and calculate the CPI.
Year
Price of a Shirt Price of a pair of Pants
year 1
$25
$20
year 2
$ 26
$ 21
The CPI for year 2 is

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