Table 20-19
$$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array} { c }
\text { CPI } \
( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2014 & \$ 10 & 100 \
\hline 2015 & 10 & 105 \
\hline 2016 & 12 & 110 \
\hline
\end{array}$$
-Refer to Table 20-19.Looking at the table above,what is the rate of growth of the average price level from 2015 to 2016?
A)1%
B)2%
C)3.5%
D)4.76%
E)5.25%

Question

Table 20-19
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array} { c } 
\text { CPI } \
( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2014 & \$ 10 & 100 \
\hline 2015 & 10 & 105 \
\hline 2016 & 12 & 110 \
\hline
\end{array}$$
-Refer to Table 20-19.Looking at the table above,what is the rate of growth of the average price level from 2015 to 2016?
A)1%
B)2%
C)3.5%
D)4.76%
E)5.25%

Quizplus · Accepted Answer

To find the rate of growth of the average price level from 2015 to 2016, we need to calculate the percentage change using the formula (new value - old value)/old value x 100.

The average price level in 2015 was 105.8, and in 2016 it was 110.8.

So the percentage change = (110.8 - 105.8)/105.8 x 100 = 4.76%.

Therefore, the correct answer is D) 4.76%.

Table 20-19 -Refer to Table 20-19