Table 16-5
The table below pertains to Napandsnack,an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs.

-Refer to Table 16-5.If the base year is 2010,then the economy's inflation rate in 2010 was

Question

Table 16-5
The table below pertains to Napandsnack,an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs.
 
-Refer to Table 16-5.If the base year is 2010,then the economy's inflation rate in 2010 was

Quizplus · Accepted Answer

To calculate the inflation rate, we need to compare the prices of the basket in 2011 with the prices in the base year 2010. Using the formula for the inflation rate, we get:

Inflation rate = ((2011 basket price - 2010 basket price) / 2010 basket price) x 100

Plugging in the values from the table, we get:

Inflation rate = ((30 - 25) / 25) x 100 = 20%

Therefore, the correct answer is choice C, 20.0 percent.

Table 16-5 the Table Below Pertains to Napandsnack,an Economy in Which the Which