Managing Income and Expenses: Mastery Test Select the correct answer. The table represents the Consumer Price Index for a basket of goods and services for three consecutive years. Calculate the inflation rate for 2014. 2012 (base year) 100 2013 125 2014 180 A. 50 percent B. 55 percent C. 44 percent D. 40 percent
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The formula for calculating the inflation rate is: Inflation Rate = (CPI in the current year - CPI in the previous year) / CPI in the previous year * 100 In this case, the current year is 2014 and the previous year is 2013. So, we have: Inflation Rate = (CPI in Show more…
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Aarya B.
The accompanying table contains two price indexes for the years $2011,2012,$ and 2013 : the GDP deflator and the CPI. For each price index, calculate the inflation rate from 2011 to 2012 and from 2012 to 2013 $$\begin{array}{|l|c|c|} \hline \text { Year } & \text { GDP deflator } & \text { CPI } \\ 2011 & 103.199 & 224.939 \\ 2012 & 105.002 & 229.594 \\ 2013 & 106.588 & 232.957 \end{array}$$
The following table shows a hypothetical situation for an economy that uses for an average household of four people a basket of only three products to calculate the consumer price index (CPI) between the years 2015 and 2018. Product | 2015 Quantity | 2015 Price | 2016 Q | 2016 P | 2017 Q | 2017 P | 2018 Q | 2018 P Product A | 20 | $50 | 22 | $52 | 23 | $55 | 22 | $56 Product B | 50 | $100 | 55 | $105 | 61 | $111 | 62 | $113 Product C | 4 | $1,200 | 5 | $1,210 | 5 | $1,225 | 5 | $1,230 If the base year is 2015, what is the value of the consumer price index in 2015? (round to the closest integer)
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