Looking at the following table,what is the rate of growth of the average price level from 2016 to 2018? $$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \begin{array} { c }
\text { CPI } \
( \mathbf { 2 0 1 6 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2016 & 10 & 100 \
\hline 2017 & 10 & 105 \
\hline 2018 & 12 & 110 \
\hline
\end{array}$$

Question

Looking at the following table,what is the rate of growth of the average price level from 2016 to 2018? $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \begin{array} { c } 
\text { CPI } \
( \mathbf { 2 0 1 6 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2016 & 10 & 100 \
\hline 2017 & 10 & 105 \
\hline 2018 & 12 & 110 \
\hline
\end{array}$$

Quizplus · Accepted Answer

To find the rate of growth of the average price level from 2016 to 2018, we need to calculate the percentage change in the average price level from 2016 to 2018.

The average price level in 2016 was 100, and in 2018 it was 125.

Percentage change = ((125-100)/100) x 100 = 25%

Therefore, the rate of growth of the average price level from 2016 to 2018 is 25/2 = 12.5% per year.

The average annual rate of growth can be calculated as follows:
((125/100)^(1/2) -1) * 100 = 4.76%

Therefore, the answer is D) 4.76%.

Looking at the Following Table,what Is the Rate of Growth