Suppose hypothetically that the consumer price index (CPI) was 150 in Year 1 and was 180 in Year 2. What would be the inflation rate for this period?
A) 12 percent.
B) 16.7 percent.
C) 20 percent.
D) 30 percent.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as ((CPI in Year 2 - CPI in Year 1) / CPI in Year 1) * 100. So, ((180 - 150) / 150) * 100 = 20 percent.

Suppose Hypothetically That the Consumer Price Index (CPI) Was 150