Table 10-4
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008.Prices and Quantities
$$\begin{array} { c c c c c }
\text { Year } & \text { Price af Cereal } & \begin{array} { c }
\text { Quantity af } \
\text { Cereal }
\end{array} & \text { Price af Millz } & \begin{array} { c }
\text { Quantity df } \
\text { Mill }
\end{array} \
\hline 2008 & \$ 4.00 & 90 & \$ 1.50 & 150 \
2009 & \$ 4.00 & 100 & \$ 2.00 & 180 \
2010 & \$ 5.00 & 120 & \$ 2.50 & 200 \
2011 & \$ 6.00 & 150 & \$ 3.50 & 200
\end{array}$$
-Refer to Table 10-4. This country's inflation rate from 2010 to 2011 was

Question

Table 10-4
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008.Prices and Quantities
 $$\begin{array} { c c c c c } 
\text { Year } & \text { Price af Cereal } & \begin{array} { c } 
\text { Quantity af } \
\text { Cereal }
\end{array} & \text { Price af Millz } & \begin{array} { c } 
\text { Quantity df } \
\text { Mill }
\end{array} \
\hline 2008 & \$ 4.00 & 90 & \$ 1.50 & 150 \
2009 & \$ 4.00 & 100 & \$ 2.00 & 180 \
2010 & \$ 5.00 & 120 & \$ 2.50 & 200 \
2011 & \$ 6.00 & 150 & \$ 3.50 & 200
\end{array}$$
-Refer to Table 10-4. This country's inflation rate from 2010 to 2011 was

Quizplus · Accepted Answer

The inflation rate is calculated using the formula: [(CPI in 2011 - CPI in 2010) / CPI in 2010] * 100. The CPI for each year is calculated using the base year prices. For 2010, CPI = (5*120 + 2.5*200) = 600 + 500 = 1100. For 2011, CPI = (6*150 + 3.5*200) = 900 + 700 = 1600. Inflation rate = [(1600 - 1100) / 1100] * 100 = 45.5%.

Table 10-4 the Country of Caspir Produces Only Cereal and Milk

Table 10-4
the Country of Caspir Produces Only Cereal and Milk