Table 20-5

-Refer to Table 20-5.Consider the following values of the consumer price index for 2010 and 2011.The inflation rate for 2011 was equal to
A) 215 percent.
B) 21.5 percent.
C) 8.0 percent.
D) 3.9 percent.

Question

Table 20-5
 
-Refer to Table 20-5.Consider the following values of the consumer price index for 2010 and 2011.The inflation rate for 2011 was equal to
A) 215 percent. 
B) 21.5 percent. 
C) 8.0 percent. 
D) 3.9 percent.

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI from the previous year. Therefore, the inflation rate for 2011 would be (225.2-216.6)/216.6 x 100% = 3.9%. Therefore, the best choice is D.

Table 20-5 -Refer to Table 20-5.Consider the Following Values of the Consumer