Table 13-5

-Refer to Table 13-5.Consider the following values of the consumer price index for 2010 and 2011.The inflation rate for 2011 was equal to
A)215 percent.
B)21.5 percent.
C)8.0 percent.
D)3.9 percent.

Question

Table 13-5
 
-Refer to Table 13-5.Consider the following values of the consumer price index for 2010 and 2011.The inflation rate for 2011 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 for 2011, we need to use the 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 = ((225.5 - 216.4) / 216.4) x 100%
Inflation rate = (9.1 / 216.4) x 100%
Inflation rate = 0.042 x 100%
Inflation rate = 4.2%

Therefore, the answer is D) 3.9 percent.

Table 13-5 -Refer to Table 13-5.Consider the Following Values of the Consumer