The consumer price index in an economy is 180 one year and 189 the next year. The rate of inflation in the period is: A 1 percent. B 5 percent. C 8 percent. D 18 percent.
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The change in CPI = (CPI in year 2 - CPI in year 1) / CPI in year 1 = (189 - 180) / 180 = 9 / 180 = 0.05 Show more…
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