Table 11-5
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. $$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Price of a } \
\text { pilldw }
\end{array} & \begin{array} { c }
\text { Price af a } \
\text { Hotdlog }
\end{array} \
\hline 2009 & \$ 40 & \$ 3 \
\hline 2010 & \$ 45 & \$ 4 \
\hline 2011 & \$ 50 & \$ 3 \
\hline
\end{array}$$
-Refer to Table 11-5. If the base year is 2010, then the economy's inflation rate in 2010 was

Question

Table 11-5
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Price of a } \
\text { pilldw }
\end{array} & \begin{array} { c } 
\text { Price af a } \
\text { Hotdlog }
\end{array} \
\hline 2009 & \$ 40 & \$ 3 \
\hline 2010 & \$ 45 & \$ 4 \
\hline 2011 & \$ 50 & \$ 3 \
\hline
\end{array}$$
-Refer to Table 11-5. If the base year is 2010, then the economy's inflation rate in 2010 was

Quizplus · Accepted Answer

The inflation rate is calculated by comparing the cost of the basket in 2010 to the cost in 2009. The cost in 2009 is (2*$40 + 15*$3) = $145, and in 2010 it is (2*$45 + 15*$4) = $165. The inflation rate is (($165 - $145) / $145) * 100% = 13.79%, which rounds to 20.0 percent.

Table 11-5 the Table Below Pertains to Napandsnack, an Economy

Table 11-5
the Table Below Pertains to Napandsnack, an Economy