Exhibit 22-3
-According to the data in Exhibit 22-3, the rate of inflation between 2009 and 2010 was about
A) 2 percent.
B) 1 percent.
C) 0 percent.
D) -1 percent.
E) -2 percent.

Question

Exhibit 22-3 
-According to the data in Exhibit 22-3, the rate of inflation between 2009 and 2010 was about
A) 2 percent. 
B) 1 percent. 
C) 0 percent. 
D) -1 percent. 
E) -2 percent.

Quizplus · Accepted Answer

To calculate the rate of inflation, we need to use the formula ((CPI in 2010 - CPI in 2009)/CPI in 2009) x 100%. Plugging in the numbers from Exhibit 22-3, we get ((218.056 - 215.949)/215.949) x 100% = 0.98%, which rounds to 1%. Therefore, the best choice is B, with an explanation that the rate of inflation between 2009 and 2010 was approximately 1%.

Exhibit 22-3 -According to the Data in Exhibit 22-3, the Rate of the Rate