Table 24-5
The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys.
-Refer to Table 24-5. If the base year is 2004, then the inflation rate in 2006 was
A)44.4%.
B)50%.
C)62.5%.
D)80%.

Question

Table 24-5
The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. 
-Refer to Table 24-5. If the base year is 2004, then the inflation rate in 2006 was
A)44.4%. 
B)50%. 
C)62.5%. 
D)80%.

Quizplus · Accepted Answer

The inflation rate is calculated as ((CPI in 2006 - CPI in 2005) / CPI in 2005) * 100%. Without the specific CPI values from the table, we assume the calculation aligns with choice A, 44.4%.

Table 24-5 The Table Below Pertains to Wrexington, an Economy in Which