For an imaginary economy,the value of the consumer price index was 140 in 2013 and 146.5 in 2014.The economy's inflation rate for 2014 was
A)4.6 percent.
B)6.5 percent.
C)4.4 percent.
D)46.5 percent.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI from one year to the next. The formula is: [(CPI in 2014 - CPI in 2013) / CPI in 2013] * 100 = [(146.5 - 140) / 140] * 100 = 4.6 percent.

For an Imaginary Economy,the Value of the Consumer Price Index