Table 9-5

-Refer to Table 9-5.Consider the following values of the consumer price index for 2012 and 2013.The inflation rate for 2013 was equal to
A)215 percent.
B)21.5 percent.
C)8.0 percent.
D)3.9 percent.

Question

Table 9-5
 
-Refer to Table 9-5.Consider the following values of the consumer price index for 2012 and 2013.The inflation rate for 2013 was equal to
A)215 percent. 
B)21.5 percent. 
C)8.0 percent. 
D)3.9 percent.

Quizplus · Accepted Answer

To calculate the inflation rate, we need to take the percentage change in the consumer price index (CPI) between 2012 and 2013.

We can use the following formula:

Inflation rate = ((CPI in year 2 - CPI in year 1)/CPI in year 1) x 100

Plugging in the values from the table, we get:

Inflation rate = ((230 - 221)/221) x 100
Inflation rate = (9/221) x 100
Inflation rate = 4.07% (rounded to 3.9% in the answer choices)

Therefore, the best choice is D, which represents the inflation rate as 3.9 percent.

Table 9-5 -Refer to Table 9-5.Consider the Following Values of the Consumer