Table 24-1
The table below pertains to Pieway,an economy in which the typical consumer's basket consists of 10 bushels of peaches and 15 bushels of pecans.

-Refer to Table 24-1.If 2006 is the base year,then the inflation rate in 2006 was

Question

Table 24-1
The table below pertains to Pieway,an economy in which the typical consumer's basket consists of 10 bushels of peaches and 15 bushels of pecans.
 
-Refer to Table 24-1.If 2006 is the base year,then the inflation rate in 2006 was

Quizplus · Accepted Answer

To calculate the inflation rate, we need to compare the price level in the current year (2008) with the base year (2006). In 2006, the price index was 100 (by definition). In 2008, the price index was 120. Therefore, the inflation rate can be calculated as ((120-100)/100) x 100 = 20%. Therefore, the answer is B, 20%.

Table 24-1 the Table Below Pertains to Pieway,an Economy in Which the Which