For an imaginary economy,the value of the consumer price index was 140 in 2013,and the inflation rate was 5.0 percent between 2013 and 2014.The consumer price index in 2014 was
A)145.0.
B)147.0.
C)135.0.
D)133.3.

Question

Quizplus · Accepted Answer

To calculate the consumer price index in 2014, we need to use the formula:
CPI in 2014 = (CPI in 2013) * (1 + inflation rate)
CPI in 2014 = 140 * (1 + 0.05)
CPI in 2014 = 140 * 1.05
CPI in 2014 = 147.0
Therefore, the consumer price index in 2014 is 147.0.

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