Table 20-8
$$\begin{array} { | c | c | }
\hline \text { Year } & \text { CPI } ( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } ) \
\hline 2015 & 100 \
\hline 2016 & 120 \
\hline
\end{array}$$
-Refer to Table 20-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2015 and 2016?

Question

Table 20-8
 $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { CPI } ( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } ) \
\hline 2015 & 100 \
\hline 2016 & 120 \
\hline
\end{array}$$
-Refer to Table 20-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2015 and 2016?

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI from one year to the next. From 2015 to 2016, the CPI increased from 100 to 120. The inflation rate is $(120 - 100) / 100 \times 100\% = 20\%$.

Table 20-8 -Refer to Table 20-8