Exhibit 13-1 Consumer Price Index

-As shown in Exhibit 13-1,the rate of inflation for Year 2 is:
A) 5 percent.
B) 10 percent.
C) 20 percent.
D) 25 percent.

Question

Exhibit 13-1 Consumer Price Index
 
-As shown in Exhibit 13-1,the rate of inflation for Year 2 is:
A) 5 percent. 
B) 10 percent. 
C) 20 percent. 
D) 25 percent.

Quizplus · Accepted Answer

To calculate the rate of inflation, we need to compare the change in the Consumer Price Index (CPI) from Year 1 to Year 2. The CPI has increased from 100 to 110, which means a 10 percent increase in prices. Therefore, the rate of inflation for Year 2 is 10 percent.