Table 23-5
The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2006.

-Refer to Table 23-5.Batterland's inflation rate from 2005 to 2006 was

Question

Table 23-5
The table below contains data for the country of Batterland,which produces only waffles and pancakes.The base year is 2006.
 
-Refer to Table 23-5.Batterland's inflation rate from 2005 to 2006 was

Quizplus · Accepted Answer

The inflation rate formula is (Price Index for Current Year - Price Index for Previous Year) / Price Index for Previous Year x 100%. Using the data from the table, the price index for waffles in 2005 is 120 and in 2006, it is 160. For pancakes, the price index in 2005 is 150 and in 2006, it is 200. 
For waffles:
(160-120)/120 x 100% = 33.3%
For pancakes: 
(200-150)/150 x 100% = 33.3%
Therefore, the inflation rate for Batterland from 2005 to 2006 is 33.3%. The answer is C.

Table 23-5 The Table Below Contains Data for the Country of Batterland,which