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Use the following to answer questions 32-33: Table: CPI Year CPI Value 1999 110 2000 115 2001 117 2002 115 32. (Table: CPI) T

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Q32
Answer
Option B
2000 to 2001
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Disinflation means there is a decrease in the inflation rate

Inflation rate =((CPI of the year -CPI of last year)/CPI of last year)*100

inflation in 2000=((115-110)/110)*100=4.54545455=4.5%
inflation in 2001=((117-115)/115)*100=1.73913043=1.7%
Inflation in 2002=((115-117)/117)*100=-1.70940171=-1.7%

Q33
Answer
Option B
2001 to 2002

The deflation is negative inflation and that in the year 2001-2002.


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