Table 24-1

-Refer to Table 24-1.Suppose the typical consumer basket consists of 10 bushels of peaches and 15 bushels of pecans.Using 2005 as the base year,what was the inflation rate in 2006?

Question

Table 24-1
 
-Refer to Table 24-1.Suppose the typical consumer basket consists of 10 bushels of peaches and 15 bushels of pecans.Using 2005 as the base year,what was the inflation rate in 2006?

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the consumer price index (CPI) from one period to the next. In this case, the CPI in 2005 is 100, and the CPI in 2006 is 120. Therefore, the inflation rate from 2005 to 2006 is (120 - 100) / 100 * 100 = 20%.

Table 24-1 -Refer to Table 24-1.Suppose the Typical Consumer Basket Consists of Consumer