Table 13-8
$\begin{array}{|c|c|}
\hline \text { Year } & \text { CPI } \
\hline 2017 & 100 \
\hline 2018 & 120 \
\hline
\end{array}$
-Refer to Table 13-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2017 and 2018?
A) 2%
B) 5%
C) 10%
D) 12%
E) 20%

Question

Table 13-8
 $\begin{array}{|c|c|}
\hline \text { Year } & \text { CPI } \
\hline 2017 & 100 \
\hline 2018 & 120 \
\hline
\end{array}$
-Refer to Table 13-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2017 and 2018?
A) 2%
B) 5%
C) 10%
D) 12%
E) 20%

Quizplus · Accepted Answer

The inflation rate is calculated as $(CPI_{2018} - CPI_{2017}) / CPI_{2017} \times 100$. Thus, $(120 - 100) / 100 \times 100 = 20\%$.

Table 13-8 Year CPI 20171002018120\begin{array}{|c|c|}\hline \text { Year } & \text { CPI } \\\hline 2017 & 100 \\\hline 2018 & 120 \\\hline\end{array} Year 20172018​ CPI 100120​​

Table 13-8 $\begin{array}{|c|c|}\hline \text { Year } & \text { CPI } \\\hline 2017 & 100 \\\hline 2018 & 120 \\\hline\end{array}$