Exhibit 22-3

-According to the data in Exhibit 22-3, the rate of inflation between 2015 and 2016 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 2015 and 2016 was about
A)2 percent. 
B)1 percent. 
C)0 percent. 
D)-1 percent. 
E)-2 percent.

Quizplus · Accepted Answer

The rate of inflation can be calculated by comparing the Consumer Price Index (CPI) for 2015 and 2016. In Exhibit 22-3, the CPI for 2015 is 108 and the CPI for 2016 is 109. Therefore, the rate of inflation between 2015 and 2016 is (109-108)/108 = 0.009 or 0.9%, which is closest to choice B, 1 percent.

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