Table 9-5

-Refer to Table 9-5.Consider the following values of the consumer price index for 2017 and 2018.The inflation rate for 2018 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 2017 and 2018.The inflation rate for 2018 was equal to
A)215 percent. 
B)21.5 percent. 
C)8.0 percent. 
D)3.9 percent.

Quizplus · Accepted Answer

The inflation rate is calculated using the formula [(CPI in current year - CPI in previous year)/CPI in previous year] x 100. In this case, the CPI in 2017 was 252.8, and the CPI in 2018 was 262.6. Plugging those values into the formula, we get [(262.6-252.8)/252.8] x 100 = 3.89, which rounds up to 3.9 percent. Therefore, choice D is the correct answer.

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