Table 5-5 gives data on the consumer price index for a particular city. The base year is 2002. Use the table to answer questions .
Table 5-5

-Refer to Table 5-5. What is the inflation rate in 2005?

Question

Table 5-5 gives data on the consumer price index for a particular city. The base year is 2002. Use the table to answer questions .
Table 5-5
 
-Refer to Table 5-5. What is the inflation rate in 2005?

Quizplus · Accepted Answer

To find the inflation rate, we need to calculate the percentage increase from the base year to the given year. In this case, we are looking for the inflation rate in 2005. To do this, we take the CPI for 2005 (225) and divide it by the CPI for the base year (150). Then we multiply the result by 100 to get the percentage increase.

(225/150) x 100 = 150%

Therefore, the inflation rate in 2005 is 150% - 100% (base year) = 50%. Thus, the correct answer is B (50%).

Table 5-5 Gives Data on the Consumer Price Index for a Particular