Please answer 57-60 Use the following to answer questions 57-59: Year Consumer Price Index 2 tbase...

Question

Question

Please answer 57-60
Use the following to answer questions 57-59: Year Consumer Price Index 2 tbase year 57. (Ref 19.3 Table: The Consumer Price I

Answer 1

Answer #1

Answer:

Inflation rate = (CPI in the current year/ CPI in the base year) * 100

57) The approximate inflation rate in year 3 is: [(105-100)/100] * 100 = 5/100 *100 = 5%

Answer: A. 5%

58) The approximate inflation rate in year 5 is: [(150-125)/125] * 100 = 25/125 *100 = 20%

Answer: D. 20%

59) The approximate inflation rate in year 2 is: [(100-80)/80] * 100 = 20/80 *100 = 25%

Answer: D. 25%

60)CPI (2009) = 148.3; CPI (2010) = 152.5 .

Inflation rate = ((152.5 - 148.3) / 148.3 ) * 100 = (4.2/148.3) * 100 = 2.83%

Answer: B. 2.83%

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Answer 2

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