Table 9-7

-Refer to Table 9-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2015 and 2016?
A)2.9%
B)3.5%
C)4.6%
D)5%
E)7.5%

Question

Table 9-7
 
-Refer to Table 9-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2015 and 2016?
A)2.9% 
B)3.5% 
C)4.6% 
D)5% 
E)7.5%

Quizplus · Accepted Answer

The inflation rate between 2015 and 2016 is calculated as the percentage change in the CPI from 2015 to 2016. The CPI in 2015 was 230.0 and the CPI in 2016 was 237.5. The percentage change in the CPI is (237.5 - 230.0) / 230.0 * 100 = 3.26%. Therefore, the inflation rate between 2015 and 2016 is 3.26%, which is closest to choice A) 2.9%.

Table 9-7 -Refer to Table 9-7.Suppose That the Data in the Table