Suppose that the CPI in Year 1 is 250 and the CPI in Year 2 is 100. The rate of inflation between Year 1 and Year 2 is:
A) 14.28%.
B) 40%.
C) - 150%.
D) - 60%.

Question

Quizplus · Accepted Answer

The formula for calculating the inflation rate is:
[(CPI in Year 2 - CPI in Year 1) / CPI in Year 1] x 100%

Plugging in the given values, we get:
[(100 - 250) / 250] x 100% = -60%

Therefore, the rate of inflation between Year 1 and Year 2 is -60%.

Suppose That the CPI in Year 1 Is 250 and the CPI