Table 24-5
The table below pertains to Yackandsnack,an economy in which the typical consumer's basket consists of 2 cell phones and 20 ham sandwiches.

-Refer to Table 24-5.If the base year is 2007,then the economy's inflation rate in 2008 was

Question

Table 24-5
The table below pertains to Yackandsnack,an economy in which the typical consumer's basket consists of 2 cell phones and 20 ham sandwiches.
 
-Refer to Table 24-5.If the base year is 2007,then the economy's inflation rate in 2008 was

Quizplus · Accepted Answer

To calculate the inflation rate, we need to find the percentage increase in the cost of the basket of goods from the base year (2007) to the current year (2008).

Using the table, we can see that the cost of the basket increased from $60 in 2007 to $63 in 2008.

To find the percentage increase, we can use the formula:

[(cost in current year - cost in base year) / cost in base year] x 100%

[(63 - 60) / 60] x 100% = 5%

Therefore, the inflation rate in 2008 was 5 percent. So the best choice is C) 5 percent.

Table 24-5 the Table Below Pertains to Yackandsnack,an Economy in Which the Which