Use the table below to find the inflation rate from 2007 to 2008.
$$\begin{array} { | c | c | c | }
\hline \text { Year } & \text { Naminal Wage (M) } & \text { CPI } \
\hline 2007 & \$ 13.33 & 113.2 \
2008 & \$ 13.00 & 110.0 \
\hline
\end{array}$$
A) 1.4%
B) 0.6%
C) 0%
D) -0.6%
E) -1.4%

Question

Use the table below to find the inflation rate from 2007 to 2008.
$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Naminal Wage (M) } & \text { CPI } \
\hline 2007 & \$ 13.33 & 113.2 \
2008 & \$ 13.00 & 110.0 \
\hline
\end{array}$$
A) 1.4%
B) 0.6%
C) 0%
D) -0.6%
E) -1.4%

Quizplus · Accepted Answer

The inflation rate is calculated using the formula: $(CPI_{2008} - CPI_{2007}) / CPI_{2007} \times 100$. Substituting the given values: $(110.0 - 113.2) / 113.2 \times 100 = -1.4\%$.

Use the Table Below to Find the Inflation Rate from 2007