Table 20-7

-Refer to Table 20-7. Suppose that the data in the table above reflect price levels in the economy. What is the inflation rate between 2012 and 2013?
A) 2.9%
B) 3.5%
C) 4.6%
D) 5%
E) 7.5%

Question

Table 20-7
 
-Refer to Table 20-7. Suppose that the data in the table above reflect price levels in the economy. What is the inflation rate between 2012 and 2013?
A) 2.9% 
B) 3.5% 
C) 4.6% 
D) 5% 
E) 7.5%

Quizplus · Accepted Answer

The inflation rate between 2012 and 2013 is calculated as the percentage change in the CPI from 2012 to 2013. The CPI in 2012 was 232.9 and the CPI in 2013 was 240.0. The percentage change in the CPI is (240.0 - 232.9) / 232.9 * 100 = 3.0%. Therefore, the inflation rate between 2012 and 2013 is 3.0%, which is closest to choice A, 2.9%.

Table 20-7 -Refer to Table 20-7. Suppose That the Data in the the Data