Table 24-8
The table below relates to the economy of Mainland, where the typical consumer's market basket consists of 2 televisions and 300 hamburgers.
-Refer to Table 24-8. If the base year is 2013, then the economy's inflation rate in 2014 is
A)11.1 percent.
B)200 percent.
C)10 percent.
D)90 percent.

Question

Table 24-8
The table below relates to the economy of Mainland, where the typical consumer's market basket consists of 2 televisions and 300 hamburgers. 
-Refer to Table 24-8. If the base year is 2013, then the economy's inflation rate in 2014 is
A)11.1 percent. 
B)200 percent. 
C)10 percent. 
D)90 percent.

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the CPI from one year to the next. In this case, the CPI in 2013 is 100 and the CPI in 2014 is 111.1. Therefore, the inflation rate in 2014 is (111.1 - 100) / 100 * 100 = 11.1 percent.

Table 24-8 The Table Below Relates to the Economy of Mainland, Where