Table 16-1
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 16-1.If 2006 is the base year,then the inflation rate in 2006 was

Question

Table 16-1
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 16-1.If 2006 is the base year,then the inflation rate in 2006 was

Quizplus · Accepted Answer

To calculate the inflation rate, we need to use the formula: 
Inflation rate = ((Price index in current year - Price index in base year)/Price index in base year) * 100

Using the data from the table: 
- Price index for 2006 (base year) = 100 
- Price index for 2007 = (2*12 + 3*15)/(2*10 + 3*15) * 100 = 120 
- Inflation rate for 2007 = ((120-100)/100) * 100 = 20%

Therefore, the inflation rate in 2006 was 20%.

Table 16-1 the Table Below Pertains to Pieway,an Economy in Which the Which