Full-Time Employed = 80 Part- Time Employed = 25 Unemployed = 15 Discouraged
Workers = 5
Members of Underground Economy = 6
Consumer Price Index = 110
Refer to the given information about a hypothetical economy.The rate of inflation
A)is 110 percent.
B)is 10 percent.
C)is 0 percent.
D)cannot be determined from the data.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) value alone does not provide enough information to determine the rate of inflation. To calculate inflation, we need the CPI values for two different periods to compare the change.